The Huawei Takeover
HUAWEI - sound familiar? With the current turmoil between US and China over the trade war, Chinese telecom equipment producer, Huawei, adds to the fuel, accused of stealing intellectual property and using their products to spy on behalf of China.
What this means: Huawei is the biggest telecommunications and internet equipment provider globally. Due to the Cold War-style trade war and national security issues, the US banned any use of Huawei products or networks - but without any alternative domestic infrastructure. When it comes to 5G, Huawei has the potential to globally monopolize the mobile telecom industry. The Trump administration is trying to persuade other foreign governments to also drop the firm but without an economically friendlier alternative, the US may simply be left out.
Huawei's consumer division chief, Richard Yu, recently made a bold statement that, “Even without the U.S. market we will be number one in the world,” further claiming that they will beat Apple in becoming the world's top smartphone maker. With Huawei's growing power and the escalation of U.S.-China trade war, building out an internationally competitive 5G network and innovative telecom devices is critical for the U.S. It’s been said that building out a new internet telecom network could be as important as the discovery of electricity.
Bottom line: the U.S. needs to step up its game, or be left in the dust.