According to foreign media reports on May 24, US congressmen put forward a bill on May 22 to provide up to $700 million (US$1, about 6.9 RMB) to help US telecom operators remove equipment from so-called security risk Chinese companies, including Huawei. The U.S. ban on Huawei will not make the U.S. network safer. On the contrary, it will harm the interests of ordinary Americans and businesses, depriving them of access to leading technologies, reducing competition and raising prices.
Subsidies of $700 million
According to the Wall Street Journal website on May 23, a summary shows that the bill proposes a policy that the 5G wireless network in the United States should not include equipment or services provided by Huawei, ZTE or their affiliates. The policy covers more than the measures announced by the Trump administration last week against Chinas telecommunications equipment, which was aimed at preventing imports of new Chinese equipment and restricting U.S. companies from exporting spare parts to Huawei.
Reported that the bill will provide about $700 million in subsidies to help U.S. telecommunications companies remove and replace Chinese equipment.
The bill has the support of some Republicans and Democrats.
According to Reuters on May 22, Republican Senator Tom Cotton, who co-sponsored the bill, said in a statement that because of the many stakes involved, our communications infrastructure must be protected from threats from foreign governments and Huawei companies.
Senate Intelligence Committee Chief Democrat Mark Warner and Senate Business Committee Chairman Roger Wake also supported the bill.
Small operators cant afford it
Reuters pointed out that although large U.S. wireless companies have cut off relations with Huawei, small rural operators still rely on Huawei and ZTE switches and equipment because they are usually cheaper.
The Association of Rural Wireless Operators, which represents operators with fewer than 100,000 subscribers, estimates that Huawei and ZTE devices account for 25% of its network membership, costing between $800 million and $1 billion to replace them.
The New York Times website argues that the ban will cause economic losses to tens of thousands of American employees of Huaweis American companies, which have business contacts, because Huawei buys more than $11 billion in goods and services from American companies every year.
It is pointed out that in remote rural areas where services are inadequate in the United States, dozens of 4G networks are equipped with Huawei equipment. The ban will prevent independent small U.S. telecom operators such as Eastern Oregon Telecom and Wyoming Union Wireless from developing new services and providing faster broadband connections for millions of people. These operators will be forced to spend a limited amount of money to replace Huaweis equipment with more expensive equipment provided by Huaweis competitors (Ericsson and Nokia are not American companies).
Cant guarantee network security
According to the Senators statement, the bill introduced on May 22 will also prevent the use of equipment or services from Chinese companies such as Huawei in the next generation of 5G networks. According to the New York Times website, Huawei is recognized as the industrys 5G technology leader, and blocking Huawei may make the United States unable to keep pace with the rest of the world in launching 5G network, thereby damaging the U.S. economy. Most importantly, the ban will not achieve the goal of making American digital networks safer.
The report points out that the United States may end up lagging behind many European and Asian countries that plan to launch 5G products --- allowing these countries to take the lead in providing new products and services to their residents.
U.S. officials worry that using Chinese devices will allow remote control of mobile phones, electricity, banking and other key services. To this end, the New York Times website put forward the view that it is the common responsibility of operators, equipment suppliers and service providers to ensure the security of telecommunication networks, and they should take guaranteed and transparent risk mitigation measures together. Telecom operators control the network and the data flowing in it. Given the current available risk mitigation procedures, it will be extremely difficult to avoid their control. Moreover, Huawei has repeatedly said it will refuse any orders to attack or monitor customers.
The ban was questioned
The report also argues that it is unreasonable to target Huawei solely because of its headquarters in China. Like Huawei, telecom companies like Nokia and Ericsson use global supply chains. They use equipment developed or manufactured in China, as do most telecommunications and network equipment installed in the U.S. network. Blacklisting a company (or all companies in a country) is not conducive to mitigating the risks of the global supply chain, but will dramatically reduce competition and inevitably lead to higher costs.
According to the New York Times website, if you really want to protect the U.S. network, the White House and the Department of Commerce should not block a company, but should develop a comprehensive risk management plan based on a recognized best practice.
The report argues that blocking any company, let alone Huawei, the industry leader, will weaken competition, delay the spread of 5G, reduce innovation, and deprive American consumers and businesses of access to the worlds most advanced communications technology. The Trump administration should stop these superficial strategies and instead develop a transparent framework for detecting and protecting all parts of the U.S. communications network.
DATA FIGURE: In the R&D Laboratory of Huawei Companys Shenzhen Headquarters, R&D personnel are preparing for the performance test of plate antenna. (Xinhua News Agency)