The White House and the Trump administration is putting a lot of pressure on US-based tech companies to create or build equipment that supports 5G to compete with Huawei. Huawei is the world’s best and leading hardware and telecom service company and they have the best communication equipment which they sell to all large companies to help smartphones and cell towers function well.
The main aim of the US is to create the engineering standards required for 5G so that all the telecom and technology companies will choose the US technology over Huawei. The reason for the strong disregard of the US towards Huawei is because of the accusations against the company of undermining national security through corporate espionage and ties with the Chinese government. The US politicians and Intelligence agencies have accused Huawei of these claims.
The White House had banned US companies from using the services from Huawei or working with them. As a result of this, Google had to take back its Android license which allowed the smartphones of Huawei to use the Google software.
Against the American government’s wishes, Britain had accepted Huawei’s services in their country last month for the 5G devices. The UK allowed it’s four major telecom companies to purchase the Huawei technology. The Canadian government is also not against accepting Huawei in their country, but are waiting to see what happens with Britain for taking this decision.
A White House economic adviser, Larry Kudlow said that “ The big-picture concept is to have all of the US 5G architecture and infrastructure done by American firms, principally”. He added that this will include Nokia and Ericsson because of their huge American presence.
The Chinese government has played a very big role in Huawei’s success. They have put in lots of investments and also took measures to block competitors so that the company can grow well in the Chinese market. Huawei not only flourished in the Chinese market but globally with all major tech and communication companies as their clients.
The United States is trying to adopt the same strategy for US-based firms to reduce the popularity of Huawei. The government is trying to tap Microsoft and Dell for building 5G centric hardware business. Senate lawmakers are pushing the federal government to invest $1 billion for the same. They want to completely cut Huawei from the US and global markets but the truth is that Huawei is already years ahead of other companies in terms of technology and in building the necessary infrastructure for 5G. Therefore, it will be difficult for the US government to separate all the industries from this Chinese company.
The real challenge for the other companies is that they not only have to agree to the common standards but create comparable hardware and deploy it in such a way that the 5G network kicks off nationwide in the given time frame.
Huawei’s US security lead Andy Purdy said that “ if the US wants 5G hardware and software developed by the US or European company, the government should encourage companies to begin negotiations with Huawei to license our 5G technology”. He also said that the combined technology will be 2 years behind the comparable Huawei products in terms of functionality and assurance.