The United States plans to permanently ban Huawei ZTE, and the wireless communication industry will usher in a new pattern
Do you remember when you just switched to the latest 5G phone last summer? At that time, you were gladly showing off to your friends that this is the world's leading 5G communication technology! Unexpectedly, just recently, a decision from the U.S. government may allow you to use this beloved new mobile phone.
Background: The Federal Communications Commission (FCC) is planning to adopt a proposal to permanently ban Chinese "controlled list" companies, including Huawei and ZTE, from participating in the wireless device certification process. Once implemented, it will be difficult for related products of Chinese companies such as Huawei and ZTE to enter the US market. This will undoubtedly deal a heavy blow to the business development of these companies in the United States and around the world.
Chinese companies occupy an important position in the global wireless communication market
The specific content and scope of the U.S. government's move: According to the FCC's proposal, once passed, Chinese companies included in the "controlled list" such as Huawei and ZTE will be permanently banned from participating in the FCC's wireless device certification program, and will not be able to become testing laboratories or certification bodies. In the United States, any electronic product entering the U.S. market needs to pass FCC certification, which means that it will be difficult for related products of Chinese companies such as Huawei and ZTE to enter the United States for sale.
Huawei's ZTE Global Market Status: Despite being suppressed by the United States, Huawei and ZTE still have a significant market share in the overall global telecommunications and mobile communications equipment market with emerging markets such as China, Asia, the Middle East, Latin America, and Africa. According to the data, in 2022, Huawei has more than 115 global 5G commercial contracts, maintaining a leading position in the global 5G wireless communication field. ZTE is also one of the world's leading suppliers of communication equipment and network solutions.
Rationally look at maintaining the stability of the global industrial chain
China's Response and Position: The Chinese government and companies firmly oppose this move by the United States. China's Ministry of Commerce has repeatedly stated that the US should stop politicizing economic issues and generalizing the concept of national security, and create a level playing field for Chinese companies, including Huawei and ZTE, to invest and operate in the US. Huawei and ZTE have also said they will defend their rights and interests through legal means.
Impact on the U.S.-China tech war: This move will undoubtedly further intensify the confrontation and game between China and the United States in the field of science and technology. The United States has always regarded Huawei as a "national security threat" and has continuously increased its pressure on Huawei. China, on the other hand, has repeatedly called for the politicization and weaponization of normal economic and trade exchanges. For the time being, it is difficult for the two sides to reach a consensus on this issue.
Future trends in the wireless communication industry: Despite many obstacles, the development trend of next-generation wireless communication technologies such as 5G has become irreversible. 5G will be widely used in many fields such as industrial manufacturing, smart home, and autonomous driving, and will have a profound impact on economic and social development. Countries should abandon narrow geopolitical considerations, strengthen international cooperation in 5G technical standards and spectrum resources, and jointly promote the healthy and orderly development of the 5G industry.