HUAWEI v/s US – ‘National Security’ redefined!

‘National Security’ – Defined as the security of a nation state including its citizens, economy &
institutions. Originally conceived as protection against military attack, it now includes cyber security
as well. [1] The definition mentioned above is being positioned by the US as the main reason to
place Huawei on the “entity list”, limiting the business US companies could do with. [2] However one
wonders if this is another trade issue between US and China, where Huawei is being played as a
bargaining chip!

Huawei Ban Explained! –

Huawei, currently the world’s no.1 telecom supplier and No.2 phone manufacturer, was originally
banned in 2012 i.e. US companies couldn’t buy Huawei networking equipment. [3] The charge of
Chinese surveillance agencies using malware into US networks was never established [4]. However,
“national security” presumably gives governments the power to act without hard evidence as such.

China’s “growth story” and its desire to become one of the leading world powers has not been
impacted post this 2012 incident. Huawei despite the 2012 ban went on to sell many smartphones
across the world including regions like Europe and Asia. [5]. We have also seen the recent instances
of the US government banning Huawei smartphones in May, charges of intellectual theft, arrest of
its CFO etc. This was followed by other countries like UK, Australia, Italy “banning “Huawei too.
However, countries like Russia, Germany, India etc did not follow suit. [3]

The recent ban had to do with what US companies sell; not what they buy. Because Huawei doesn’t
sell phones in the US, the most popular Huawei products affected would never be shipped here. As a
result, it’s hard to see the latest action as protecting any national security interests. Instead, it feels
like Huawei’s device business has become collateral damage in a broader fight over 5G. Also, the fact
that all these incidents have coincided with US- China trade wars cannot be ignored!

Tit for Tat- Is China’s one way “wall justified”?

China has spent the major part of the last couple of decades to keep out major US companies from
setting up shop in China but at the same time has grown exponentially in international markets
including US. [6] A digital wall with major trade repercussions that was built by China is now being
scaled up by the US on the other side! This was always on the cards especially since China doesn’t
seem to show any inclination in allowing US companies to set up shops on Chinese soil.

What next?

The US government has announced a major relaxation of the May 2019 ban in July 2019, however it
was also clarified that Huawei would not be removed from the so-called entity list, and that US
companies would still need to apply for a licence. Post the G20 summit in Osaka, it was announced
that US companies would be allowed to “sell” to Huawei, but the “how part” was not mentioned. [7]

Eventually –

The two world powers, US and China have been at loggerheads on the Huawei issue under the guise
of “national security”. However, if the issue was only pertaining national security then relaxation of
the ban should not have been announced in July 2019. It is obvious that trade implications and
political factors between the 2 countries is the “real issue” which may not be stated in as many
words! Trade negotiations seem to be the most plausible ‘solution’ to this “national security” issue!
References-

[1] - https://en.wikipedia.org/wiki/National_security

[2]- https://www.techradar.com/news/huawei-ban

[3] - https://www.cnet.com/news/huawei-ban-full-timeline-on-how-and-why-its-phones-are-under-
fire/

[4] - https://www.theverge.com/2019/5/22/18634401/huawei-ban-trump-case-infrastructure-fears-
google-microsoft-arm-security

[5] - https://economictimes.indiatimes.com/tech/hardware/no-one-would-buy-a-huawei-
smartphone-sans-google-or-facebook/articleshow/69811287.cms

[6] - https://www.nytimes.com/2019/05/20/business/huawei-trump-china-trade.html

[7]- https://www.ft.com/content/301d6d9c-a2a7-11e9-974c-ad1c6ab5efd1