The Huawei juggernaut

Huawei’s European Research Center in Munich (Source)

Disturbing article (depending on your perspective) about the growing superiority of telecom giant Huawei:

Huawei Technologies, the spearhead of China’s trillion-dollar Belt and Road Initiative (BRI), isn’t a Chinese company, but an imperial juggernaut that crushes its competition and employs their intellectual resources. By 2013 it employed 40,000 foreigners–mostly in R&D– out of a workforce of 150,000. I think it foolish to think that the Chinese can’t innovate, but it doesn’t matter whether they can or not, any more than the siege skills of Mongol horsemen mattered in 1258.

A minor but telling example of Huawei’s imperial reach is the announcement this month that Huawei will build a 400-person chip design facility in Cambridge. It will compete with ARM Holdings, the chip design firm sold in 2016 to Japan’s Softbank. Softbank is a major shareholder in China’s e-commerce giant Alibaba, another spearhead of BRI. The combination of mobile broadband and e-commerce allows China to “Sino-form” economies of the Global South, turning them into Chinese dependencies […]

The fact is that Huawei’s equipment is years a head of its competition’s. It spends $20 billion a year on R&D, double the combined spend of its largest competitors Ericsson and Nokia. A dirty little secret is that Ericsson and Nokia make most of their hardware in China, so that if the Chinese wanted to implant “back door” spy chips, they could do as easily for the Scandinavians as for Huawei.

The world order seems to be cracking up and dividing into different spheres of influence. Maybe we can refer to these emergent geopolitical regions as “the U.S.” and “Huawei-land.”

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