The West shutting out Huawei could backfire in the long run, says IMD Business School Howard Yu.
LAUSANNE, Switzerland: Western fears of Chinese telcoms giant Huawei infiltrating their technological infrastructure are rooted in fears of China’s rise.
FILE PHOTO: Huawei CEO and founder Ren Zhengfei walks inside Huawei's headquarters in the southern Chinese city of Shenzhen, Guangdong province, in this October 16, 2013 file photo. This is the Huawei that Western governments and a lot of the media are becoming the most vocal against.When officials in Washington talk about the importance of banning Huawei from the US or forbidding US companies like Qualcomm and Intel from selling products to Huawei, they are talking about something that is harder to advocate, at least publicly. And that is to disengage from China – because disengaging is not possible in the world’s globalised economy.
So demanding were BT’s criteria that the chairwoman of Huawei had to set up an independent BT support department to directly report to her, and then hired Mercer, a US consultancy firm, to develop a new governance structure.When I visited Shenzhen in China last year, local managers explained to me that much of the city’s infrastructure will be digitised, and that Huawei will saturate it with a 5G network. This will reduce speed issues and latency problems for computers using that network.
FILE PHOTO: A BT company logo is pictured on the side of a convention centre in Liverpool northern England, April 9, 2016. REUTERS/Phil NobleHuawei has a different idea for connected cars, which uses its own technology and bypasses the need for chips built by third-party providers. This will directly undermine Intel’s strategy, in China and beyond.
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