Tuesday, December 10, 2019

Why Europe will choose the US over China

With the US and China locked into an increasingly heated rivalry, the Nato meeting signalled that - slowly, hesitantly - America's European allies are beginning to swing behind the US. The key issue to watch here is Huawei, the Chinese telecoms firm, that is bidding to build 5G broadband networks across the world.

The US has blacklisted Huawei, imposing sanctions that prevent the Chinese firm from buying components from America.

Despite Washington's lobbying, Huawei has made considerable progress in signing up international customers for 5G. As a recent article in Nikkei Asian Review points out: "So far, the company has sealed 65 contracts, with almost half coming from European countries."

Many Europeans were already taking a more jaundiced view of China.

An important moment came earlier this year, when the European Commission issued a paper that described China as a "Systemic rival".

Shunning Huawei in favour of a European solution is likely to lead to a more costly and slower deployment of the technology.

Even more dauntingly, Huawei equipment is already embedded in the existing telecoms systems of Britain, Germany and other European nations.

https://www.ft.com/content/d6ec28de-1a61-11ea-9186-7348c2f183af?segmentId=b385c2ad-87ed-d8ff-aaec-0f8435cd42d9

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