Home > Analysis > Real reason for U.S. Putting Huawei on Entity List … and for U.S. to Persuade Other nations to block Huawei 5G

Real reason for U.S. Putting Huawei on Entity List … and for U.S. to Persuade Other nations to block Huawei 5G

I have read in in so many places how putting Huawei on the Entity List on “national security grounds” makes no sense. I ran into this article on Asia Times by David Goldman – a U.S. patriot / stooge – that finally and honestly explains the real reason.

For those with a head: the danger posed by Huawei 5G has never been of China snooping others, but of the king of snoop – the U.S. and the five eyes – loosing its ability to snoop around the world. Yet the U.S. has the gall to declare to the world: please stop buying Huawei 5G because you don’t want to be snooped. Buy our stuffs … err.. when they are ready … so you are safe from being snooped…

So its nice to see a U.S. patriot admit the true in splendid detail – while also acknowledging that Chinese have – finally(!) – invented something new…

Without further ado, here is an excerpt of Goldman’s article:

“A major worry for American defense planners and intelligence strategists is China’s drive to deploy extremely secure quantum communications. This development was announced by China in August 2016 . . . Quantum communications for the Chinese are designed to produce encryption that is unbreakable – a capability that would hamper what has been a strategic advantage for the United States in relying on the very capable code breakers at the US National Security Agency.”

… Quantum communications, a Chinese innovation, inaugurates a revolution in signals intelligence.

Gertz discusses Washington’s campaign to dissuade its allies from buying fifth-generation (5G) mobile broadband technology from China’s national champion Huawei Technologies. By the time the book went to press, it was evident that the initiative was a humiliating failure; not a single country on the Eurasian continent bent to American threats, which included the suspension of intelligence-sharing. Quantum communications help explain why.

Not only the Chinese, but South Korean, Japanese, British and other teams are building the capability to embed quantum communications in the new 5G networks. Not only will China go dark to US signals intelligence; the rest of the world will, too, and in short order. Huawei’s 5G systems will wipe out America’s longstanding advantage in electronic eavesdropping. The US intelligence community spends $80 billion a year, mostly on SIGINT, and the whole investment is at risk. Washington’s view, dutifully reported by Gertz, is that Huawei’s dominance in 5G systems will allow China to steal everyone’s data. The reality is far more ominous, as I understand it. China will enable the rest of the world to cut off America’s access to everyone else’s data. When Secretary of State Mike Pompeo urged a senior German official not to buy Huawei’s broadband, the German replied that China hadn’t eavesdropped on Chancellor Angela Merkel’s cell-phone conversations, as had the United States.

Huawei owns 40% of the patents related to fifth-generation broadband, largely because it spent twice as much on research and development as its two largest rivals (Ericsson and Nokia) combined. The strategic challenge to the United States comes not from Chinese technology theft, obnoxious as that is, but from Chinese innovation backed by state resources. The American intelligence community realized too late that China had gained the upper hand, and convinced the Trump administration to try to postpone the 5G rollout until it could work out what to do next. The failure is of such catastrophic proportions that no one in a position of responsibility dare acknowledge it for fear of taking the blame.

I will leave at that. But notice the last sentence … which may give a preview of things to come.

At first, U.S. will accuse you of stealing. Then when they can’t, they will accuse you of playing unfair.

We are at the interim between first and second stage now. U.S. commentators will begin to admit that China invented 5G or quantum communication or whatever … but only through “unfair” state sponsorship.

I don’t see why the U.S. has to resort to this sort of rancid rhetoric. There are several rational choices to make, all without smearing others!

  1. Hasn’t all major U.S. innovations arisen with State sponsorship in the form of federal grants in Universities or outright government subsidies? If so, why blame China or others for playing unfair?
  2. Many Americans think that subsidies don’t work, at least many tech subsidies don’t work. If this is right, then the Chinese are fools. Let China rot. Let them go on their foolish ways…
  3. Perhaps China is really onto something here with its form State capitalism. If that form is truly much more competitive than standard Western capitalism, then it’s time to reform! Why sputter hate and rancid accusations against a better competitor?

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