America's plan to cripple Huawei has not worked. Time for a new approach?
unleashed a barrage of actions against Huawei, a Chinese telecoms giant which it believes spies for the Chinese government and threatens Western interests because of its dominant role intechnologies. Since May, American firms have mostly been banned from supplying Huawei. The Justice Department wants Canada to extradite a top executive who is accused of sanctions-busting. Uncle Sam’s diplomats have urged other countries to stop using Huawei gear.
Instead of Huawei’s demise, the tech world faces a split, with an increasingly self-sufficient Chinese industry active everywhere but America. America and its allies could lag behind in, because Chinese firms offer cutting-edge technology at the lowest cost. Replacing existing Huawei gear would be expensive. Competition would suffer. And if Huawei develops rivals to the likes of Android it would weaken Western tech firms.
Telecoms intellectual-property portfolios have been sold before. Microsoft bought parts of Nokia in 2014, for example. In this case the buyer would face no competition from Huawei in America, where the Chinese firm does not operate . In other countries the two would go head to head, though it would take the new competitor years to ramp up manufacturing.
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