What’s more, the United States is also preparing to completely dismantle the 5G networks that Huawei and ZTE have built locally. Although it knows that it will suffer certain losses in doing so, it is still determined. So for now, has the U.S.’s attitude toward Huawei and ZTE changed? Or what is its ultimate purpose?
On September 28, according to the latest news from the U.S. Federal Communications Commission (FCC), the United States launched a new program worth $1.9 billion, mainly to subsidize those affected by the dismantling of Huawei and ZTE equipment. American companies that suffered losses. This represents a massive investment of US$1.9 billion! The United States is determined to dismantle Huawei and ZTE equipment, and American companies have no choice but to accept it.
As we all know, as early as 2019, the FCC included telecommunications equipment from Huawei, ZTE and other Chinese companies into the "blacklist". Not only did it not allow US companies to purchase it, it also disseminated it globally. There are false claims that these devices pose safety risks. Although many countries understand that this is just a means by the United States to restrict Chinese companies, it still has a very negative impact on Huawei and ZTE.
Now it seems that the United States has further strengthened its control over Huawei and ZTE equipment. It has subsidized US companies US$1.9 billion to achieve the goal of completely dismantling Huawei and ZTE equipment. In the eyes of the United States, Huawei and ZTE's equipment has never been recognized. No matter how advanced the technology is, it will only be regarded as a stumbling block by the United States.
But it should be noted that if the United States is really determined to dismantle all Huawei and ZTE telecommunications equipment, then the US$1.9 billion in subsidy funds is far from enough, and it will have to endure more for this. loss. Because Huawei and ZTE have been deeply involved in the US market before, in addition to 5G networks, there are still a lot of 4G equipment left, and the United States will have to pay a greater price to dismantle them.
So, despite the fact that the United States suddenly spent 1.9 billion US dollars this time, it seems that it wants to completely eliminate equipment from Huawei and ZTE. But as everyone knows, Huawei and ZTE's layout of the US market in the past few years has been more complete than imagined. It would be a bit fanciful for the United States to want to drive them away with only US$1.9 billion.
More importantly, once Huawei and ZTE are forced to withdraw from the US market, the local 5G network construction work will be unsustainable. Even if the United States can find other 5G suppliers, Huawei and ZTE will not be able to avoid it. ZTE’s patented technology. Huawei, in particular, has begun charging 5G patent fees from other companies in the first half of this year, and American companies can be said to bear the brunt.
To give a simple example, news came from abroad some time ago that Verizon, the largest local communications operator in the United States, was forced to reach a patent settlement with Huawei and had to hand over US$1 billion in patent fees to Huawei. This is precisely because US companies cannot avoid Huawei's 5G patents. Even if they do not cooperate with Huawei, they still have to pay a certain fee for the use of these patented technologies.
It can be seen that the current attitude of the United States towards Huawei and ZTE has not changed, and it still wants to drive Huawei and ZTE out of the US market. The reason why the United States insists on doing this is because it does not want to see the rise of China's 5G and Chinese technology. The United States knows very well that if domestic technology strength catches up, it will pose a threat to the status of US companies.
In fact, China’s 5G is now at the forefront of the world. Thanks to the strong support of domestic communications giants such as Huawei and ZTE, the development status of domestic 5G networks is far ahead of the United States. And in the face of the unreasonable behavior of the United States, instead of fighting for Huawei and ZTE, we might as well take advantage of the situation and deal a fatal blow to the United States!
Since the United States wants to dismantle Huawei and ZTE’s telecommunications equipment, China can fully satisfy its wishes. Huawei and ZTE have a limited market share in the United States, and there is no need to continue operating in the U.S. market. What's more, the United States is always thinking about how to restrict their development. Huawei and ZTE do not need to cater to it. The best choice is to find other partners.
As a result, the U.S. market will lose the technology and equipment supply of Huawei and ZTE. Although the United States certainly has other cooperation partners, the strength of Huawei and ZTE in the 5G field is obvious to all. , ordinary manufacturers are not their opponents. If the United States wants to speed up its own 5G network construction, Huawei and ZTE are indispensable, and it will soon realize this.
When the United States' 5G completely lags behind the global average, it will understand the importance of Huawei and ZTE, and how stupid it was in its decision to drive them away. Moreover, regarding the so-called security threat theory of Huawei and ZTE equipment, our country can also use this to make a big fuss, thereby making it difficult for US companies to operate in the domestic market.
For example, Apple and Google in the United States have monopolized the entire mobile phone operating system market. Our country can completely restrict Apple and other products from American companies from entering China under the pretext of security risks. This is undoubtedly an unacceptable result for the United States. Once it loses the huge market of China, the losses for American companies will be immeasurable.
In summary, the United States has provided US$1.9 billion in subsidies to encourage American companies to dismantle Huawei and ZTE equipment. This approach is unwise and will only lead to domestic resistance and affect the to the normal development of U.S. companies. You must know that today is an era of globalization, and openness and win-win are the most mainstream trends. If the United States attempts to break the rules, the final result will only be failure.