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The goal of China’s telecom giant Huawei is global domination
U.S. Senator Marco Rubio (R-FL)
October 17, 2024
…I first rang the alarm on Huawei in 2018. At that time, the company was making inroads into the United States and our allies’ territories through the sale of low-priced 5G technology… Its primary goal was, and remains, the domination of the global wireless market on Beijing’s behalf, combined with the expansion of the Chinese Communist Party’s ability to spy on and disrupt other countries’ communications….
President Trump was the first world leader to recognize this threat…. Today, 60 countries and more than 200 telecom companies have joined the Clean Network, an alliance to stop Huawei’s monopolization efforts in their tracks…. And yet, Huawei continues to grow. The Wall Street Journal reports that it “has expanded into new businesses, boosted its profitability and…held on to its leading position in the global telecom-equipment market.”
This growth is not a reflection of Huawei’s ingenuity or good business sense; it is a reflection of heavy subsidization by the Chinese state. Keith Krach and Jonathan Pelson point out that “the telecom equipment behemoth abruptly lost about $30 billion annually…following the efforts by the U.S. and its allies to block high-risk equipment”…. Reading between the lines, the hidden hand of Beijing is keeping Huawei from certain contraction or even bankruptcy with tens of billions of dollars….
“If the Chinese government decides to preserve Huawei at all costs,” write Krach and Pelson, “that is consistent with the view that Huawei is a lot more than an industrial ‘national champion’ for China.” Instead, the authors conclude: “[I]t is a tool of foreign policy and geopolitical influence. The money spent on propping up Huawei can be best compared to Defense and Intelligence budgets.” In other words, the company’s current trajectory confirms concerns about the national security threat it poses….
It is key for the U.S. to encourage strong and reliable companies to help regional partners develop alternatives to Huawei and protect them from the company’s predatory policies…. Meanwhile, I urge Latin American leaders not to heed Huawei’s siren song. No 5G deal is worth allowing a totalitarian dictatorship to spy on and interfere in a free nation’s affairs.