Are moves against Huawei about commercial or national competition?

Is the decision by the United States to put a trading ban on Huawei designed to protect the interests of Western technology companies, and does it mark the start of a new bipolar world? These are the questions posed by John Naughton, a senior research fellow at Center for Research in the Arts Social Sciences and Humanities of University of Cambridge, in a commentary published by The Guardian on June 2.

The logo of Huawei. [File photo: IC]

Naughton outlines a history of how the ban came into being and provides his views on the reasons for the embargo. The moves against Huawei could be purely for commercial reasons, Naughton suggests, as Huawei is a strong competitor with many Western tech companies based in the United States. He also suggests it could be because the world is entering a new Cold War: "we're back in a bipolar world". As Huawei is both a challenger to American tech dominance and a symbol of China's growing strength, Naughton said it's no surprise that some Western countries would want to curb its development.

As for how China will respond, Naughton points to the inspection in May by Chinese President Xi Jinping to a rare earths producer in east China's Jiangxi Province. As rare earths are an essential part of the chips made by American companies, Naughton said the visit isn't a coincidence.

For the full text of the article, pleased click the link:

https://www.theguardian.com/commentisfree/2019/jun/02/trump-banning-huawei-beginning-of-biggest-trade-war-ever-united-states