{
"authors": [
"François Godement",
"Mathieu Duchâtel"
],
"type": "other",
"centerAffiliationAll": "dc",
"centers": [
"Carnegie Endowment for International Peace"
],
"collections": [],
"englishNewsletterAll": "asia",
"nonEnglishNewsletterAll": "",
"primaryCenter": "Carnegie Endowment for International Peace",
"programAffiliation": "AP",
"programs": [
"Asia"
],
"projects": [],
"regions": [
"East Asia",
"China",
"Western Europe"
],
"topics": [
"Technology"
]
}
Source: Getty
5G brings with it unprecedented possibilities of applications, including healthcare, education, autonomous vehicles, augmented reality, industrial production, public services. But it does come with risks.
Source: Institut Montaigne
Is Huawei paying the price for its high profile? The case serves to create attention to Europe’s hard choices for 5G infrastructure. 5G brings with it unprecedented possibilities of applications, including healthcare, education, autonomous vehicles, augmented reality, industrial production, public services. But it does come with risks.
Donald Trump’s decision to forbid American companies from trading with Huawei is a game changer, with repercussions exceeding by far the US-China confrontation. European companies will inevitably be faced with hard choices, and the Chinese company’s long standing 5G offer suddenly poses a much more critical dilemma.
In its quest for the status of global leader in telecommunications network equipment, Huawei's strong presence in European 3G/4G has compensated for its absence in American networks. Indeed, Huawei is already at the heart of Europe’s telecommunications networks. But will it be able to maintain its offer without its American suppliers?
For the time being, France and several European countries have excluded a ban against Huawei and are opting instead for a regulatory approach aimed at securing sensitive data. Will such an approach be sufficient?
Institut Montaigne has decided to address the issues related to 5G deployment at a European level. The growing dilemma around Huawei sheds light on European weaknesses in digital networks.
This policy paper was originally published by Institut Montaigne.
Former Nonresident Senior Fellow, Asia Program
Godement, an expert on Chinese and East Asian strategic and international affairs, was a nonresident senior fellow in the Asia Program at the Carnegie Endowment for International Peace.
Mathieu Duchâtel
Mathieu Duchâtel is Director of the Asia Program at Institut Montaigne since January 2019.
Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.
China’s banking crisis in the 2000s was resolved by transferring the costs to households through financial repression—a decision that recapitalized the banks while exacerbating the structural imbalances that continue to shape the Chinese economy today.
Michael Pettis
Chinese biotech companies have been on the receiving end of U.S. economic coercion. Yet their responses have differed significantly because firm and state interests are not uniformly aligned. For Washington, treating all Chinese tech firms the same, irrespective of their actual interests, risks pushing them farther into Beijing’s corner.
Xue Gong
China’s latest energy plan explicitly calls for integrating data centers into the electricity system, particularly connecting them to green energy. It appears Beijing wants to use compute as a source of domestic demand to absorb renewables excess capacity.
Damien Ma
But their "principal to principal" model will only be as effective as the political strength of each leader back home.
Damien Ma
U.S. unpredictability has allowed China to capitalize on its positioning as the “responsible great power”. Paradoxically, the more China wins the perception game, the more likely expectations will rise for Beijing to deliver not just words but to demonstrate with its deeds.
Chong Ja Ian