Hold The Phone: Huawei Mistrust Imperils China Tech Ambitions

China's ambitious drive to dominate next-generation 5G technology faces a sudden reality check as fears spread that telecom companies like Huawei could be proxies for Beijing's intrusive security apparatus.

Shanghai, (APP - UrduPoint / Pakistan Point News - 11th Dec, 2018 ) :China's ambitious drive to dominate next-generation 5G technology faces a sudden reality check as fears spread that telecom companies like Huawei could be proxies for Beijing's intrusive security apparatus.

Fifth-generation mobile communications are the next milestone in the digital revolution, bringing near-instantaneous connectivity and vast data capacity.

They will enable the widespread adoption of futuristic technologies such as artificial intelligence and automated cars and factories -- advances China is desperate to lead.

With 5G's rollout expected to gain pace in coming years, the race to dominate standards and control security and data traffic underpins much of the current high-tech rivalry between the United States and China, technology experts said.

Huawei's status as a leading world supplier of the backbone equipment for telecoms systems -- mostly in developing markets -- gives China an inside track.

But analysts said mounting concern over Huawei imperils that lead.

"This is a big threat because if Huawei loses access to lucrative Western markets, this will impact its ability to grow and finance R&D," said Paul Triolo, a global technology policy expert with risk consultancy Eurasia Group.

It also could hinder the deployment of 5G networks in China, which are "a key piece of China's overall effort to upgrade its industrial base", he added.

The US defence establishment fears China's dominance of critical 5G infrastructure could enable it to disrupt American military communications or otherwise wage asymmetrical warfare in a confrontation.

Triolo warned of potentially disastrous fallout for China if US law-enforcement efforts -- in the spotlight after the arrest of Huawei executive Meng Wanzhou in Canada -- result in a ban on sales of US chips and other vital technology to Huawei.

"This could be catastrophic for China's tech ambitions, threatening (Huawei) itself, supporting industries, and future development," he said.