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Finding the Root Cause of Ban on Import of Chinese Telecom Equipment to US

Strategic Council Online - Interview: An expert on East Asia affairs, emphasizing that limiting Chinese technology in the US market will deal a heavy blow on and damage the economy of that country, said: The United States is trying to put constant pressure on Chinese companies in order to harm their interests and since disrupting the market will face international protest and cost, it seeks to justify such actions by calling the Chinese technology insecure.

Mehdi Khorsand, in an interview with the website of the Strategic Council on Foreign Relations, pointed to the ban on the import of telecommunications equipment from the Chinese brands Huawei and ZTE into the United States by the US Federal Communications Commission under the pretext of threats against its  “national security”, and stated: The US security officials have claimed that the equipment of the Chinese brands such as Huawei can be used to collect sensitive information for espionage due to interference with the 5th generation wireless networks.

Saying that previously one of the Huawei’s senior managers had announced that the company is trying to launch G6 network in 2030, he added: Huawei was a pioneer in the development of the fifth generation mobile network and has launched its operations to access the next generation mobile network, that is to say G6. In addition, China has launched its first G6 test satellite, which is considered as a great achievement in the discovery of terahertz space communication technologies in China’s space industry, and terahertz communication is considered as one of the key technologies in the development of the G6 network due to its high transmission speed.

The expert on East Asia affairs continued: Under a situation in which China is testing key examples of G6 network technology, Europe and the United States are also investing in it in parallel, and most American and even European companies, because of the same sanctions imposed by the United States against Chinese telecommunications companies, cannot trade with them or share their ideas.

Khorsand, stating that Britain will publish its G6 technology development strategy and reports show that Ericsson is trying to invest millions of pounds in the research of the network in Britain, added: After the US administration embargoed Chinese companies, the country has turned to Ericsson and Nokia. Ericsson has also announced that it will help develop the next generation with a 10-year plan, and according to forecasts, G6 networks will be commercialized around 2030. Of course, China is still the leader in expanding the G6 network.

The expert on East Asia affairs, recalling that the ban on Chinese telecommunication products is taking advantage of the wide and bipartisan support of the US Congress, added: The restriction and pressure on China, especially in the field of technology, began during the Trump era. During that period, many technology companies of the United States left the Chinese market.

He stated that the purpose of such measures is to slow down China’s technological and military progress and said: At the instigation of the United States, Taiwan is transferring many of the infrastructures for manufacturing high semiconductor technologies to the United States. Taiwan, the world’s largest chip maker, has said it will comply with export rules, the rules that say China cannot access certain chips made anywhere in the world using the US technology.

Khorsand noted: The United States is trying to hinder China’s progress and control that country. During the Trump era, the actions of the Americans against China were concrete and objective, but now the Democrats are dealing their blows on China step by step and then, after examining the results, take another step. Limiting Chinese technology in the American market, which is one of the most used markets for technological goods, leads to the removal of many incomes of the Chinese companies and causes a great blow and damage to the economy of that country.

He said: According to the statements of the heads of Huawei, the US sanctions, the war in Ukraine and the consequences of the Coronavirus outbreak have had an important impact on their performance, and the internal focus of that brand will no longer be on making profits in the near future; rather, it will only try to stay in the market. The managing director of Huawei said that in order to try to survive, they will completely stop their activities in some countries. According to surveys, Huawei is currently lagging behind expectations for 2022, and its revenue has also declined compared to the last year.

The expert on East Asia affairs continued: During the Trump era, Germany under Chancellor Angela Merkel stood up to the United States for China’s fifth generation technology. Therefore, this process that the United States started during Trump’s tenure has become more intense, and many European countries will also be forced to limit the import and purchase of Chinese technologies in their country by order of the United States, and this will be an irreparable blow to the continued technological growth of China.

Referring to the statements of European officials to reduce strategic relations with China and statements of the British prime minister who said that China is a systemic challenge against their values ​​and interests, and the golden era of China-England relations during the time of former Prime Minister David Cameron has come to an end, Khorsand emphasized: According to the rules of the World Trade Organization, countries are obliged not to create any obstacle for companies in the global market so that they can offer their products in a competitive environment, and the market balance should not be disturbed by external pressure.

He reminded: The United States is trying to upset the balance with constant pressures on Chinese companies, and since disrupting the market will face international protest and cost, it seeks to justify such actions by calling Chinese technology as being anti-security. Under this situation, allegations such as espionage by Chinese companies are sensitive for a large number of people in the European and American society, and because of this accusation, those who could protest against such governmental pressure should remain silent.

Referring to the intensification of American pressures against China, the analyst of East Asia affairs said: The US is trying to use the same scenario of pushing Russia into war for China, and today it has gone towards China’s power-building tools and economic growth. This space is tolerable for the Chinese to some extent. Even if China does not enter into hegemonic competition with the West, it has to continue its economic growth for its billion plus population, and advanced technologies are one of the dimensions of this economic growth. China will definitely respond to the restrictions imposed by the United States, and this strategic patience has a limit.

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