Industry Updates: Huawei


So, I was reading an article from Strand Consulting about Huawei and it was very interesting. It talked about how Romania banned Huawei and how the USA wasn’t the first country to ban Huawei. In fact, it went further into the China issue. 

They brought up the differences in the People’s Republic of China, (PRC), and how one-sided the vendor selection is there. We often forget how they treat other nationalities’ technology and favor their own. Instead, the narrative in the West is about being fair to them when they reduce to reciprocate. It’s not that it’s not fair, it’s pure discrimination. Plain and simple.

Keep in mind that this is a country that deployed the most cameras in its own cities. In fact, 9 out of the top 10 cities for the most cameras fall within China according to a 2020 article from US News. 

Per the article I grabbed the chart below:

Here are the top 10 most-surveilled cities in the world, according to Comparitech:
CITYCOUNTRY# OF CCTV CAMERAS# OF PEOPLE# OF CCTV CAMERAS PER 1,000 PEOPLE
TaiyuanChina465,2553,891,127119.57
WuxiChina300,0003,256,02092.14
LondonEngland (UK)627,7279,304,01667.47
ChangshaChina260,0004,577,72356.8
BeijingChina1,150,00020,462,61056.2
HangzhouChina400,0007,642,14752.34
KunmingChina200,0004,443,18645.01
QingdaoChina250,0005,619,97744.48
XiamenChina150,0003,720,14140.32
HarbinChina250,0006,387,19539.14

London is the only city on this list that isn’t in China. Crazy, right? I am pretty sure it’s not to watch Americans walking around, but it could be. In fact, China is one of the leaders in developing AI for facial recognition. 

Back to the Strand article, let me sum up all the bullet points they had. I would recommend reading the entire article.

Summation:

  • Romania banned Huawei only after they looked into banning them only after the Romanian Supreme Council of National Defense (CSAT), which Huawei bypassed approvals from them again and again until they could avoid them no longer. The world saw this as Romania following the US lead, but it was more than that.
  • While the US is taking the heat for banning Huawei, it was Australia which originally banned Huawei (2012) in the 4G market going forward, and not just Huawei but all Chinese equipment.
  • The EU followed in the 5G era because they felt equipment had to be secure.
  • IPVM released a report and video showing how PRC blocks foreign technology (competition) once they produce their own technology. Those reports talk about how PRC tries to break away from western technology.
  • Then the Strand article refers back to a previous report showing how many non-Chinese companies have been banned or severely limited since 1996.
  • The article goes on to mention all the freedom limitations in China.

If you have the time and want to see what other tech companies have been dealing with, I recommend digging in. It’s quite an interesting rabbit hole. Tech companies are to the point where they realize they will never make money in China and that gaining that market share is not worth it. I believe it’s only a matter of time until non-Chinese companies pull out of the market. I know many have been losing money there for over a decade now, just to gain some market share. This has always frustrated me that the margins in a rich country, like the USA, have to subsidize margin in another wealthy country like China. 

Trust me, China has its problems, but it’s not a poor country. The PRC keeps the Yuan value low so it looks poor. Now they’re doing all they can to keep it healthy because so much wealth has left the country.

Back to tech. While the Chinese companies have come a long way in a very short time at the expense of western patent holders is amazing. But now we have to look at how we move forward. In the western countries we;ll see a world with less and less Chinese technology.

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