China’s low-cost tech will trump other concerns

Subject

China's international technology partnerships.

Significance

The US Federal Communications Commission (FCC) announced on March 26 that it is considering blocking federal subsidies for smaller telecom operators that use Chinese technology. The US government is determined to prevent Chinese companies such as Huawei and ZTE from developing a stronger base in the United States. This attitude, grounded in national security concerns, stands in contrast to the situation in many other markets where these companies have developed high-profile and close relationships with telecom operators and governments.

Impacts

• Huawei and ZTE may overtake US firms in filing for patents.
• Telecom partnerships with developed and emerging economies are likely to increase Beijing’s influence over global internet governance.
• China’s low-cost high-tech equipment is likely to overcome security objections from intelligence agencies in other countries.