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Refusing 5G Fair Play exposes US's over anxiety
2019/06/22

By Dr. Zhao Yongchen, Ambassador of the People’s Republic of China to Grenada

On May 15, the US government issued an Presidential Executive Order that declared a national emergency and authorized the Commerce Secretary to regulate the acquisition and use of information and communications technology and services from a “foreign adversary”. The US Secretary of Commerce Ross immediately announced that Chinese leading telecommunication enterprise Huawei had been included in the "list of entities". The intention is obvious. When the China-US trade consultations were deadlocked, the US government attempted to use a Chinese private enterprise as a bargaining chip to force China to give up. At the same time, it premeditated to completely defeat Huawei and further curb China's high-tech development and industrial upgrading momentum, so as to get time for US companies in the global market competition for emerging technology sectors such as 5G technology and maintain a monopoly in the international industrial division of labor.

From the "Technical Injunction" inserted in the US Defense Authorization Act of 2019, to the US Secretary of State speculating on the so-called "Huawei technical security issues" all over the world threatening other countries not to use Huawei technology, and then to the Presidential Executive Order on May 15, the United States has used the power of the state to suppress a Chinese company, taking a variety of unconventional means, which is unprecedented and rare in the world.

Huawei has invested in 5G technology research for more than 10 years,ahead of others for at least 5 months to 18 months, and has obtained more than 2,570 basic patent licenses. with over 30 commercial contracts in 5G and more than 40,000 5G base stations sent over the world. Huawei,already the world's largest 5G equipment manufacturer,is not only a mobile phone manufacturer, but also the world's largest telecommunications equipment manufacturer. Its routers and switches are welcomed by many consumers because of high quality and low price. Huawei's strong scientific and technological capabilities are constant source of momentum for Huawei's development, far exceeding the United States.

A true athlete facing competitors should compete fairly with the Olympic spirit of “faster, higher, stronger”, rathe than secretly compromising or even threatening rivals and prohibiting them from participation. Rejecting 5G competition and choosing unfair measures, the United States has completely exposed its increasing lack of confidence and over anxiety. Huawei purchases more than $11 billion worth of goods and services from US companies every year. The executive order will cause economic losses to thousands of employees of US companies that do business with Huawei. The total ban on Huawei equipment will lead to five-digit loss of jobs in the United States. It is neither fair nor ethical to use state power to discredit and attack specific businesses without any evidence. Of course, a country has the right to safeguard its information security, but the precautions of security cannot be used to damage or even stifle the legitimate business operations of enterprises. For such unreasonable bullying practices, all countries should be vigilant and boycott. Such practice violates the basic norms of market economy and international economic and trade practices, and showcases the naked economic bullying of the United States.

Since the second industrial revolution, the United States has maintained the role of a global technology leader, and many of the important inventions that affect human production and life are from the United States. In fact, after 40 years of reform and opening up, China has emerged as the world's No. 1 manufacturing country and the only country in the world with all the industrial categories in the UN industry classification. China's high-speed rail technology, nanotechnology, biotechnology, internet fintech and 5G technology have already taken the lead in the world, and China is becoming the shaper of the new generation of technology rules. While the United States still possesses of overall advantage in the emerging technology, a dictator for the future, but it has fallen behind in some key industries. Take Huawei as an example. In 2017, the investment of Huawei in R&D has surpassed the total amount of the entire semiconductor industry in the US, including Intel and Qualcomm. Why the US government rejects 5G competition? The root of its fear is that US has no technology companies in this field that can compete with Huawei's R&D capabilities.

The United States has always advertised itself as the key representative of market economy, and what it operates is the purest market economy.“Invisible hand”playing a leading role encourages full market competition, and realizes the optimal allocation of resources by the market, and the government only plays the role of "gatekeeper." However, the competition in 5G has just begun, and the “gatekeeper” cannot wait and jump directly into the ring as a referee, even as thugs. The current US administration with deceasing confidence in its own free economic approach,, has frequently used administrative means to intervene in the economy. In foreign trade, it waves the banner of “America First” resorts to investment restrictions, protectionism, and omnipotent. "visible hands" can be seen everywhere. We can't help but ask, is this a market economy or an economic bullying?

After the World War II, the United States maticulated the construction of an international order dominated by the United States labelling liberalism, multilateralism, free trade and peaceful dispute resolution. However, the current US administration has unreasonably blamed others for the slowing-down economic growth, and subverted the rule system established by itself and accepted by the Western world. This is self-interested and self-reliant “American First”. Instead of winning through fair competition, it relies on extreme pressure, unilateral sanctions, forced tariffs, and withdrawal from international organizations to continuously lower the morality of international relations. This practice is futile and does not help the development of the its own economy.

As an old saying in China goes, a just cause attracts much support, an unjust one finds little. I believe that the vast number of developing countries and the people who uphold fairness and justice will surely recognize the arrogance of the United States. Fair play will definitely be achieved.

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