2019-01-01 03:34:48 Tue ET
technology antitrust competition bilateral trade free trade fair trade trade agreement trade surplus trade deficit multilateralism neoliberalism world trade organization regulation public utility current account compliance
American allies assist AT&T and Verizon in implementing 5G telecommunication technology in the U.S. as such allies ban the use of HuaWei 5G telecom equipment. This assistance arises as an equilibrium outcome several weeks after the arrest of HuaWei CFO in Canada amid a key U.S. probe into whether the Chinese tech titan violates U.S. economic sanctions on Iran. The U.S. federal government undertakes multiple measures to curb the influence of HuaWei and its fellow Chinese telecom firm ZTE. These measures ban the HuaWei and ZTE sales of 5G mobile devices on U.S. military bases. During the current 90-day trade truce with China, the Trump administration remains adamant about maintaining key American dominance in 5G telecommunication (which is at least 10 times faster than the 4G telecom standard).
National Economic Council chief economic advisor Larry Kudlow emphasizes the fact that 5G telecommunication technology is the top priority for national economic security. These landmark events echo the recent Trump bans on the cross-border merger between Qualcomm and Broadcom as well as Chinese HuaWei and ZTE acquisitions of critical technologies in Silicon Valley. Apple and Samsung may or may not introduce their 5G smartphones and tablets until 5G telecom proliferation reaches a critical mass before mid-2020.
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