Who would have guessed the quest for a faster internet would spark the fiercest battle in a trade war? Huawei leads the next generation 5G equipment market. Washington suspects billions in Chinese subsidies are the reason for this. China’s telecoms giant denies this. Nonetheless, the US plans to expand sanctions. The biggest casualties will be its suppliers.
As 5G spending accelerates, Huawei, benefits most. Its handful of rivals — Finland’s Nokia, South Korea’s Samsung and Sweden’s Ericsson — cannot match Huawei’s low prices. The US does not have a local alternative.
The US commerce department has reportedly drafted new rules to block further shipments, including non-technical products, to Huawei. It also plans to control any foreign-made components made using US technology shipped to Huawei.