The Huawei Moment

Abstract

For the first time, a Chinese company—Huawei—is set to lead the global transition from one key national security infrastructure technology to the next. How did Washington, at the beginning of the twenty-first century, fail to protect U.S. firms in this strategic technology and allow a geopolitical competitor to take a leadership position in a national security relevant critical infrastructure such as telecommunications? This policy brief highlights the characteristics of 5G development that China leveraged, exploited, and supported to take the lead in this key technology. The Huawei case study is in some ways the canary in the coal mine for emerging technologies and an illustration of what can happen to U.S. competitiveness when China’s companies do not have to base decisions on market forces.

A Shot of Resilience

“…The United States has used the following strategies in the past, and should consider these options in future plans to create a resilient vaccine supply: 22 • Expand the biomanufacturing workforce through talent development programs. Human capital needs to be a priority, as new vaccine manufacturing facilities will not succeed without a technically proficient workforce to power them.…”

China’s State Key Laboratory System

“…The Bell System encompassed all aspects of the telecommunications sector for most of the twentieth century, and allowed its R&D arm, Bell Labs, to make critical contributions in basic research. 55 A significant portion of its historical success was due to the overlapping priorities over the U.S. government and the domestic telecommunications industry, a phenomenon that is now present in current-day China.…”

Securing 5G: A Way Forward in the U.S. and China Security Competition

“…Motorola was an early player in the cellular infrastructure market, as well as a maker of push-button mobile phones. However, a series of events and competitive market pressures led to spin-offs and the fragmentation of R&D divisions at both companies and a reduction in U.S. corporate R&D spending on wireless telecommunications (Rubin et al, 2021).…”