Why the Accusations against Huawei by the US and Their Impact on the Global Market

Introduction

The accusations against Huawei from the United States have been a topic of heated debate in the global marketplace. Questions persist regarding the true motives behind these accusations and the consequences of these actions on the global technology landscape. This article explores the accusations and sheds light on the underlying reasons and impacts.

The Accusations and Challenges

The United States frequently accuses Huawei of stealing trade secrets and assisting in surveillance efforts, particularly in relation to Iran. In 2018, a Huawei official was arrested in Canada, leading to a series of allegations that continue to dominate discussions.

Accusation 1: Stealing Trade Secrets
According to US officials, Huawei may have been involved in misappropriating trade secrets, particularly focusing on Cisco Systems' proprietary technology. Since the beginning of the millennium, Huawei and its subsidiary, Futurewei Technologies, have faced accusations of misappropriating operating system source code for internet routers and manuals from Cisco Systems located in Northern California.

However, Huawei has consistently denied these allegations and attempts to prove its innocence. The question arises: if Huawei really stole trade secrets, why would they roll out 5G technology in 2019 while the US is still 1-3 years behind in its own development? It seems unlikely that stealing technology would give Huawei such a significant technological advantage over a major power like the United States.

The Competitive Motive

The underlying motive behind these accusations can be attributed to competitive reasons rather than law enforcement. The United States is attempting to irreversibly damage Huawei's reputation and business, leveraging this accusation to gain advantage in the global telecommunications market.

The US approach extends beyond trade secrets. The US government accuses Huawei of installing surveillance equipment in Iran, which was used to monitor and detain protesters during the 2009 anti-government demonstrations in Tehran. Iran is under US sanctions, making this accusation particularly significant in the context of geopolitical tensions.

The Role of Espionage and Diplomacy

America is a world leader in espionage, both industrial and political. However, the US government often accuses other countries of unfair practices when it perceives them as competitors. This hypocrisy is evident when the US denies that it engages in similar espionage practices.

One could argue that the accusations against Huawei stem from a broader strategy. President Trump appears to be practicing hegemony and global dominance on both commercial and political levels. The US is using its economic and national power to exert pressure on its allies to refuse Huawei products, threatening them with tariffs and nullifying trade agreements.

This approach is essentially a form of commercial blackmail, designed to force countries to conform to US interests. For instance, UK allies face a dilemma: they can either accept the loss of billions in revenues or wait for the US to catch up in 5G technology, potentially missing out on cutting-edge advancements.

Europe's Dilemma and Dependence

European nations face a particular challenge given their heavy dependence on Huawei for cellular technology. Many of the necessary components for cellular networks are not yet available from the US. Additionally, Huawei's service is rated as the best in the world, with 24/7 service centers and superior repair records.

While US military equipment is superior, the decision to buy or not to buy Huawei products is a complex one. Europe does not NEED US cell technology, which is inferior and years behind Huawei's advanced technology. Purchasing these products from the US could be seen as supporting a competitor while facing economic pressures from the US.

Conclusion

Whether to support the US in its accusations against Huawei or to adopt a more pragmatic approach based on technology and service quality is a difficult decision for European companies. It ultimately comes down to assessing the balance between economic pressures and technological advancements. As the global market continues to evolve, the lines between espionage, competition, and diplomacy will undoubtedly remain blurred.