China’s national telecom champion, Huawei, is also Beijing’s most accomplished intellectual property thief. Today, Huawei is also the tip of a Chinese spear about to skewer Apple and its CEO, Tim Cook.
In the Trump administration, I was heavily involved in efforts to neutralize the Huawei threat. The best we could do, however, was to cut off at least some of the company’s chip supply so that Huawei handsets wouldn’t be the mobile phone of choice worldwide.
This is a dangerous revolution: 5G is not just a way to make lightning-fast, drop-free phone calls. It can seamlessly interconnect both people and machines in ways that will lead to a dramatic increase not just in productivity but also in dangerous cyber vulnerabilities and military lethality. Now comes the twin news that Huawei has not only successfully avoided U.S. export sanctions with cutting-edge American technology in its latest phone model, but the Chinese government has also launched a multipronged offensive to get Chinese consumers to turn in their iPhones in exchange for Huawei’s new model.
To wit: China’s avowed goal is to absorb, assimilate and digest foreign technologies in ways that will breed national champions like Huawei over time and weed out foreign devils like Apple. It is also just a matter of a little more time before Chinese manufacturers move into Apple’s China factories as Apple beats its retreat.
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