A few months ago the threat upon Huawei was already in the air, now it all seems like they have been put against the wall and will be tored apart…nothing like that. There is nothing more unrealistic than to think that this saga is all about stoping “modern pirates” that “are trying to snatch our information“. If that was the case then I should be talking about Google or Facebook in the first place, offering our information for study to third parties in a total dishonest way for “marketing purposes”.
It is always, and always will be, about money. In my previous article “Huawei and the fear it causes in others” I already mentioned that trying to stop Huawei and their 5G technology was a very pervert idea as the main reason behind this plot was to make room for the 5G manufactures that were under the “American” umbrella. Being ahead in certain things is not always so good as you may be stepping on someelse´s toes.
The American lobby must have been thinking since the end of last year how to stop Huawei so they have resorted to new plans: stopping Huawei devices, part of their business that generates most of Huawei´s income will do the trick…really? Needless to say that all the organizations that are trying to stop Huawei have much to loose (contracts, influence, etc) if they dont cooperate with “uncle Sam”. Lets mention a few:
- Android (Google and all subsequence apps): California based.
- Qualcomm: California based.
- Intel: California based.
- SD Association: California based.
- Wi-Fi Alliance: Texas based.
- Bluetooth Special Interest Group: Washington based.
So the interest is not just what Huawei may deliver, it is the market that they will occupy and the services that can render behind that can make companies think twice about closing a deal. The main thing here is how to stop Huawei from developing their 5G technology (or should I say “selling their technology”?). Why is it so important? Here are a few facts on what 5G will bring to the “normal people”:
- Greater speed (enough to download a movie in few seconds): In the society we live in people get tired very soon of things. You can tell people starting something and, if it is “cheap” to obtaine (whether in money or time) they will not care and will get another one. The level of comsumption will rise as the potential to change quickly is there.
- Greater capacity (1,000 times capacity of 4G): Instant data access is also part of our societe since all information is at our finger tips. The provider that serves the information the quickest will be the winner, thus a change to 5G has to happen the sooner the better.
- Provide high resolution and larger bandwidth: Where you can watch now a high resolution movie in the future, with 5G, you will watch it in 4K or even 8K resolution.
- It will gather networks on one platform: It will be simpler to deply new technologies as several networks can co-exist in a simpler platform.
- Lower battery consumption: Your mobile phone may last longer, thus your battery may not dry as quickly as now and your mobile will last longer (over all those mobiles where the battery can not be replaced).
- Simultaneous connections can work together: Many people will be able to connect at once so your telco companies will be happy to service more people from a single spot. Until now when there were many people nearby (what it is called in telco terms “cell”) you had to fight to get some quality link.
- …and the list goes on and on.
China is currently the largest holder of U.S. government debt. It now owns $1.12 trillion in U.S. Treasury bonds. (Watch here on CNN News: China’s ‘nuclear option’ in Trump’s trade war, explained ). It is not also about technology, it is also about the power that China, as a goverment has should they trade US bonds, something that would sky-rocket the American interests and something that Trump would have difficulties to explain.
Also, let´s not forget that most of the components or equipment that is built in China ends up being sold to American companies. As an example, most parts for the Iphone (regardless the model) are made or ensambled in China. You can check it by yourself here: List of Apple suppliers.
At the end of this saga all it could end-up (as far as the public is concerned) in a handshake where both goverments (China and US) come to a compromise where they exchange technology, one has a stake on the other or even they become partners. Three months in politics is a lot of time where many things are discussed. Both have a lot to loose but, for the look of it, the one that could end up on its knees could be the one forced to face a huge amount of money and interests that can not afford in the short or medium term. China (Huawei) surely will overcome the current “little” struggle.