By Benjamin Minick
Contributing Writer for Telegraph Local|See @TimberwolfP
China’s ambassador to Germany threatened Berlin with retaliation if it excludes Huawei technology company as a supplier of 5G wireless equipment endangering revenue from millions of vehicles that the German carmakers sell in China. This is the latest attempt at China trying to market its embattled technology corporation products. In the last 2 to 3 years, Huawei spent much money on research, and the result was extraordinary. Their 5G development is way ahead of America and our allies. The general feeling of the Chinese is that America feels like something has to be done to stop this march by Huawei. They will stop at nothing to halt Huawei’s ascension. America tells a different story.
China has a long history of attempting to steal American Technology and secrets to further their National gains via technology and its military. Though there is very little proof that actual espionage has taken place, it’s generally considered the only way that this Chinese technology can even compete with the American market.
President Trump has tried to garner support from U.S. allies to squeeze Huawei out of contention in any market. Recently the president has allowed 90-day extensions twice to continue to sell their technology in the United States; however, those actions appear to be concessions in the ongoing trade war with China. There is also concern that China has violated agreements that prohibit the sale of technology to Iran and has continued to market their products there. This has U.S. allies such as Germany considering an all-out ban on the company.
China is starting to feel the strain though as Huawei is a huge money magnet for them. So much so that they are willing to threaten Germany with a cessation of allowing their vehicles and technology to be sold in China. That would be a massive blow to the Germans as 34% of Volkswagen’s global sales were in China during January and November. The two countries do 200 billion euros in bilateral trade per year.
Germany would feel that. Daimler AG would also take a hit because Chinese billionaire Li Shufu is the largest single stakeholder in the company with a 9.7% stake. There is no telling how such an economic impasse would affect global markets. The trade situation between China and the United States is already tedious at best, although it is improving because of a temporary trade deal that is signifying a cease-fire of sorts in the ongoing trade war with the United States has been passed.
There was no direct statement about Huawei from Germany on China in the legislation that the German government has prepared. Months of research, however, into the 5G situation have led to the creation of this bill so China was able to read between the lines. There is no direct response from the German government to but rest assured when it happens, and it probably won’t be pleasant.