Financial Times: The United States has lost a lot by banning Huawei

Financial Times: The US has lost a lot by banning Huawei. The British "Financial Times" editorial pointed out that the U.S. Congress blacklists companies. This kind of thing does not happen often. And the United States...

But Huawei is still secretive about its own property rights structure. Its founder is a former Chinese People's Liberation Army (PLA) officer, and its chairman was previously associated with the Ministry of State Security, the agency responsible for monitoring everything on China's Internet, from emails to texts. Although Huawei denies ties to the government, the accusations from the United States still cause trouble. Even countries that have approved the use of Huawei equipment, including the United Kingdom, are concerned about the ubiquity of the company's equipment in their networks. Huawei said the U.S. House of Representatives Intelligence Committee report was based on hearsay. In this regard, it is even more necessary for Huawei to improve its transparency.

But the U.S. Congress and the White House must also distinguish what is more important. The above-mentioned report recommended excluding Huawei and ZTE from government procurement and prohibiting the two companies from participating in any mergers and acquisitions. As a result, Huawei and ZTE, the world's second- and fourth-largest telecom equipment suppliers, will only have a small piece of the cake in the United States, the world's largest market. China may take retaliatory measures against US telecommunications equipment suppliers such as Cisco. The current general political situation isn't helping matters either.

China and the United States are respectively performing two completely different types of power transitions. At the same time, the world economy is slowing down. Neither country can afford the consequences of such trade friction. Last week, Barack Obama banned a Chinese company from acquiring four wind farms in the United States because the plants were located near a drone testing site. This is the first time in 22 years that this has happened. Two weeks ago, Obama filed a complaint with the World Trade Organization (WTO), accusing the Chinese government of providing export subsidies to its auto parts suppliers. Mitt Romney promised that the first thing he would do after taking office would be to declare China a currency manipulator. Romney also accused China of massive theft of intellectual property.