The UK’s decision to ban Huawei from its 5G networks is only the latest diplomatic setback for China. So, as China’s leaders ponder how to respond, they should heed the first rule of holes: when you are in one, stop digging.
CLAREMONT, CALIFORNIA — The United Kingdom’s decision to ban Huawei from its 5G networks has dealt a painful blow to China. Until recently, China was still counting on the UK to stick to its earlier decision to allow the Chinese telecom giant to supply non-core equipment for the country’s 5G networks.
But two recent developments made such a decision untenable. The first was the United States’ escalation of its war on Huawei. The US instituted a new sanction in May banning suppliers that use American technology from providing semiconductors to Huawei. Because US technology is used to manufacture the advanced semiconductors that Huawei’s products, including 5G base stations, require, the company’s supply will be cut off, making production of its 5G equipment in the future nearly impossible.
The prospect that a key supplier of the UK’s 5G networks would no longer be able to build and maintain its system is a far more serious threat than potential Chinese snooping is. No responsible government can afford to take such a risk. So, Huawei’s days were numbered as soon as the US government pulled the trigger in May. The only question was when Prime Minister Boris Johnson would tell President Xi Jinping the bad news.
The second development, which made it politically easier for Johnson to embrace the Huawei ban, is China’s imposition of its new national security law on Hong Kong. This draconian legislation, which was proposed in late May and passed by China’s rubber-stamp parliament on June 30, has for all practical purposes ended the autonomous status of the former British colony. From the UK’s perspective, China’s action is a blatant violation of the 1984 Sino-British Joint Declaration on Hong Kong, which includes China’s pledge to respect and protect the city’s legal system and civil liberties for 50 years after its reversion to Chinese rule in 1997.
Chinese leaders might think that the UK is too weak to fight back. Clearly, they are wrong. The UK has decided to take a stand on Hong Kong, and Huawei is an easy and obvious target.
China may be tempted to strike back, and would seem to have plenty of leverage. It can squeeze UK firms doing business in China. For example, the British banking giant HSBC is especially vulnerable to bullying, because its operations in Hong Kong account for slightly more than half of its profits and a third of its revenue. China may also want to cut down financial transactions it conducts through London and reduce the number of Chinese students it sends to UK colleges and universities.
Source: Minxin Pei | Project Syndicate
No comments:
Post a Comment