President Donald Trump signed an executive order on Wednesday directing the Commerce Department to add Huawei and its 70 affiliates to the list of firms that U.S. companies may not buy Huawei equipment from. The order also restricts Huawei from buying parts made by U.S. Companies. The U.S. crackdown has escalated without regard to any moral or business guidelines, providing an extraordinary opportunity for China to observe U.S. foreign policy.
It is impossible for the United States to destroy Huawei, a leading manufacturer of 5G technology. Primarily, Huawei has not violated any rules of business nor has it violated any significant U.S. laws, providing Huawei with a legal defense against unfair U.S. actions that will allow Huawei to protect its rights.
Huawei is an indisputable leader in 5G-network technology; it holds a large number of telecommunication technology patents which allowed it to form a system of cross-purchase technology with American companies. The damage will affect both countries if the U.S. completely blocks Huawei’s links to American firms. Huawei is not going to be the lamb that the U.S. administration leads to the slaughter.
The United States has continued to threaten Huawei and make things difficult for the company in recent years. Huawei has managed to grow in an international environment that is much worse than environments in which other western companies operate, a situation which has fostered a special sense of crisis. Huawei has placed great emphasis on independent research and development of key technologies, and has paid great attention to supply chain backup construction, which makes it a company that cannot be interrupted if is blocked from buying key parts.
Huawei equipment sales in the United States have not been robust. Huawei mainly supports telecommunication networks in certain lesser markets across the United States. The replacement of Huawei equipment in those areas will cause economic loss, and will impair the quality of future telecommunication networks in those areas, making make them more expensive.
The United States’ manipulation of an entire country’s power and resources to blatantly suppress Huawei is unprecedented. However, this suppression has not gone smoothly. It is still unclear how much the United States can force its allies to avoid working with Huawei in building 5G networks, and , and it is unlikely that exerting pressure and attacking supplies will work right away.
The U.S. is the most powerful country in the world and the leader among Western allies, but there are deep-seated reasons why it achieves limited results when it exerts its full power to suppress a private company.
First, the United States’ actions are both immoral and contrary to the logic of the market. The fundamental reason that the U.S. is attacking Huawei is that it feels threatened by Huawei’s leading 5G-network technology. The U.S. should have solved this problem through its own technological advancement, but it has chosen to use nefarious means in dealing with Huawei. Allegations that Huawei poses a threat because it conducted intelligence work on behalf of the Chinese government are false, and the U.S. has exaggerated the charges. And those charges have not reduced the actual demand for Huawei equipment internationally,, and therefore, Washington’s efforts are not getting it anywhere.
Secondly, Huawei’s technology and management are actually quite good. This storm has especially highlighted the company’s powerful internal organization. The United States has so far failed to find any major fraud committed by Huawei, its attacks have all been questionable, and the U.S. will find it impossible to achieve what it wants.. Huawei’s technological advancement capabilities, internal management levels and ability to respond to crises have proven to be among the best in the world.
As the U.S. put concentrated pressure on China, Huawei unexpectedly assumed a most prominent and important position. Its performance and experience do not merely reflect the company, but all of China. Chinese society should fully support Huawei, encourage it and buy Huawei products. The country should also use its diplomatic resources to fight the United States as it abuses its strength to arbitrarily crush Huawei.
The United States, which cannot beat Huawei, will become even more powerless in any attempt to block China’s development and deprive its 1.4 billion people of their right to develop.