U.S. – China Trade Wars- The Biggest Trade War
Life is apparently now a sci-fi action movie… at last, that’s what the U.S government believes. It’s been a year since the U.S Government attempted by the means of a campaign to influence the European allies to ban the telecommunication service provided by China-based Huawei Technologies. They believe that Huawei might serve as a backdoor for Chinese spies, and have tried convincing the European Capital the same, which has responded in the negative, ignoring all the nudges despite U.S.’s threat to cut off intelligence sharing.
Pointing out the lack of considerable alternatives to refine the British telecom networks, the U.K. government has turned down the rumor of a possible ban of the Huawei networks. On the contrary Italy has instead decided to boost trade with China. They seek to increase business. German Chancellor Angela Merkel made it very clear that they don’t believe in either discussing in public about sensitive security questions nor stopping a company from providing its services merely because of the reason that they are based in a particular country. Europe’s leaders are in the process of signing contracts with the company to introduce the latest technology in mobile networks, which is the ultra-speed 5G network. They believe that for a data-based country like Europe, these contracts are extremely valuable and will contribute to its growth in the global economy. The country has, however, shown concern to some extent regarding security purposes.
How the world is getting ready
An auction selling 5G airwaves in Germany is estimated to raise about $5.7 Billion. In a scenario like this, banning Huawei makes absolutely no sense, which led the authorities to propose improved security regulation. France followed in the footsteps, taking the same measures. Analyst Paul Triolo highlights the importance of the technology and instead proposes Europe to focus on minimizing any risks involved. He claims this project to be one of the “most complex and expensive” amongst other technology projects undertaken. Huawei being banned would simply lead to delay and an increase in expenses. The lack of presentable evidence by the U.S. has also been pointed out. Industrialists believe that Huawei’s quality surpasses that of other companies, and has proven to be much more secure than its American rival, Cisco Systems Inc.
It hasn’t been easy for Huawei in countries like Germany and Denmark either, but they have still managed to increase their market share by 8 points in the past 5 years. They have made it very clear that they are very sure of privacy policies and don’t fear the U.S. In addition to this, they have also claimed that they believe they will make up for the market share that they might lose in Europe in other countries like China.