Posts Tagged ‘U.S. Protectionism’
I thought this was a very accurate characterization by Orville Schell via an op-ed on China Daily of the “dysfunctional” investment relationship between China and the U.S. at the moment. My interpretation? On one hand, China welcomes investment with open arms; think Intel, GM, Caterpillar, and even Google investing in China. That creates tons of jobs in China. American politicians calls that “exporting jobs” to China. Now China wants to “export jobs” to the U.S. through investing, and the American politicians call this a national security issue! (Yes, if Chinese companies invest in the U.S., it would also mean they will derive revenue from the U.S.. That is the same thing already being done by U.S. multinationals like Intel, GM, etc. in China. That’s globalization.) The 50 Congressional Representatives Schell referred to? They are xenophobic, protectionist, and stupid.
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Stan Abrams over at China Hearsay has a good article out today, “U.S. Practices the Art of Zen Protectionism on Huawei.”
(If you follow Huawei, you will know that it is one of the most innovative companies in China, and it has made substantial inroads around the world for its reliable and cost-effective telecom equipment. Actually, if you talk to some Cisco engineers about Huawei, they will tell you Huawei is incredibly innovative. Huawei may even be more active in international bodies defining standards – yes – even more so than Cisco!)
Abrams writes about the recent Huawei failed attempts at acquiring 3Com, 2Wire, and Motorola’s wireless equipment unit, despite offering $100 million more than the competition. He argues this was “blatantly protectionist.” I couldn’t agree more. The only disagreement I have with his article is his characterizing this blatant protectionist act on the U.S.’s part as “Zen.” It is American insecurity and xenophobia; pure and simple. Everyone in China recognize it as such.
In my opinion, this was really a blessing in disguise for Huawei.
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