Why the United States is desperately suppressing Huawei: The US Attorney General’s speech tells the reason
Why is the United States doing all it can to suppress Huawei?
On February 6, 2020, U.S. Attorney General William Barr attended the “China Initiative Meeting” at the invitation of the Washington think tank “Center for Strategic & International Studies” (CSIS) Conference) and gave a keynote speech.
In the speech, William Barr talked about the unprecedented challenge posed by China’s technological offensive to the United States and Huawei’s leadership in 5G.
He said the United States has been a world leader in innovative technology since the 19th century. It is America’s technological prowess that keeps us prosperous and secure. Our standards of living, our expanding economic opportunities for young people and future generations, and our national security all depend on our continued technological leadership.
William Barr believes that 5G technology is at the center of the emerging technological and industrial world. Essentially, communication networks are no longer just for communication. It is evolving into the next-generation internet, the industrial internet, and the central nervous system of the next-generation industrial systems that will depend on that infrastructure.
China has taken the lead in 5G, capturing 40% of the global infrastructure market. And, for the first time ever, the United States is not leading the next era of technology.
It is estimated that the Industrial Internet, powered by 5G, will generate an economic opportunity of up to $23 trillion by 2025. If China comes out on top in 5G, it will dominate the opportunities presented by a series of intertwined emerging technologies that rely on 5G platforms.
Currently, Huawei has become a leading supplier on every continent except North America. There are no equipment suppliers in the US. China’s main competitors are Finnish company Nokia (17%) and Swedish company Ericsson (14%).
China is using various forces to expand its global 5G market share. The total market size for 5G infrastructure is estimated at $76 billion. China is offering more than $100 billion in incentives to help customers buy its equipment.
Additionally, 5G is based on a range of technologies, including semiconductors, optical fibers, rare earths and materials. China has started to localize all of these elements and is no longer dependent on foreign suppliers.
William Barr said that in the next five years, the global territory and application dominance of 5G will be determined. The question is, within this window, can the United States and our allies compete enough with Huawei to retain and capture enough market share to maintain a competitive position long enough and strong enough to avoid ceding dominance to China. Time is short, and we and our allies must act quickly.
Obviously, Huawei is also ready. “We have nowhere to go except victory,” Huawei said.