Nowhere is it more clearly demonstrated that President Trump is using industrial clout to carry out “industrial militarism” than in his attack on Huawei to block the tech giant’s global 5G expansion. 5G stands for fifth-generation networks which are essentially a faster and more reliable version of wireless connectivity and mark a massive leap forward in such wireless technology. Numerous industrialized countries are moving to build a 5G network, such as Canada whose 5G network could be in place around 2020. Huawei is the largest global company in 5G development and installation and is involved in 140-plus countries around the world. In Canada, companies such as Telus and BCE, or Bell Canada, are partnering to build 5G technology along with Huawei. Their Canadian rival, Rogers, is working alongside Swedish telecom Ericsson— a main Huawei rival. As a result, Ottawa has come under increasing pressure from the U.S. to block Huawei from developing its 5G technology in Canada, as critics warn it could present a national security risk.
Recently, U.S. Attorney General William Barr made the case for an all-out economic war on China’s Huawei in order to block the tech giant’s global 5G expansion. He even called on America’s “allies” to join what amounts not only an international strategic offensive against Huawei but also against China itself. He further suggested that the U.S. and its allies, including Canada and Britain, align their financial and technological forces to support European firms, Nokia and Ericsson, Huawei’s major 5G competitors. By getting governments to become involved in a business sector, such as the telecom sector, this position would contradict the traditional American principle of supporting free-market enterprise. It would be blatantly perceived as causing a geo-strategic economic confrontation with China, similar to what occurred during the Cold War between the U.S. and the Soviet Union.
So far, a number of countries, including Canada and Britain, have rejected the idea of participating in any U.S. takeover of Nokia and/or Ericsson. Interestingly, although use of Huawei equipment has been banned in the U.S. since 2012 over fears it’s a security risk, some two dozen U.S. telecom companies have used Huawei’s equipment to provide services in remote regions. In Canada, a number of communities in provinces such as British Columbia and Saskatchewan, are using Huawei equipment to service non-core 4G in rural regions in particular. So far, there is no evidence that China has used network equipment for cyber-espionage.
As critics of “industrial militarism” argue, is it really up to Americans to fight the People’s Republic of China and its authoritarian regime — with its state-run enterprises and dirigiste economic policies — by adopting some of the same statist interventions? As one expert rightly noted, an extended trade war between the U.S. and China and threats by Trump to ban certain Chinese tech firms from the American supply chain, could further divide the global tech scene. Left unchanged, that could result in a world where technological progress among countries is far less uniform, cost-effective and integrated. In Canada, competition in the telecom sector is alive and well. Huawei, Swedish telecom Ericsson, Nokia, Samsung and others are all being allowed to compete freely in pursuit of the lucrative market. This is expected to greatly improve telecom services to Canadian consumers, especially in rural and remote regions.
FROLITICKS 