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https://www.theepochtimes.com/huawei...e_2782903.htmlIn an analysis of 5G security concerns published by the U.S. think tank Center for Strategic and International Studies, researcher James Lewis noted that both Huawei and ZTE benefit from government subsidies, giving them the ability to manufacture products and sell them at discounted prices far below international competitors.
Put simply, “the market distorting effects of government-subsidized Chinese companies reduce market share and revenue for other Western firms,” Lewis wrote.
As Huawei continues to pursue overseas clients, governments will have to choose between risking security loopholes in buying cheaper Huawei 5G equipment, or paying more for secure equipment made by other firms. “Determining how to persuade countries that they should pay a premium is one problem; determining how to securely connect and communicate over telecom networks in other countries using vulnerable equipment is another,” Lewis wrote.
China has also deliberately planned for Chinese technical standards to become the representative at international standards groups—pressuring tech firms to vote for Chinese standards.
One example cited in Lewis’s report: Chinese tech company Lenovo had voted for a proposed standard by U.S. firm Qualcomm instead of Huawei at one of the most important standards groups, the Third Generation Partnership Project. The Chinese authorities immediately criticized Lenovo for making the move.
In another instance, the Chinese regime pressured Chinese companies to back a type of technology for which Huawei holds most of the core patents—known as polar codes—instead of more mature competing technologies pioneered by Qualcomm and other Western firms. A standoff ensued, which ultimately ended with the majority of companies voting in favor of polar codes. This means all 5G mobile cellular technology will employ the polar codes.
“China has politicized the standards-making process,” the report said.
Huawei has also increasingly taken senior leadership positions at these standard-setting bodies, as part of Beijing’s attempts to raise its 5G sector’s influence.
This is a concerted effort by China to stake its claim. Chinese companies take leadership positions at lower-impact committees, then use them “to promote Beijing’s interests through a combination of holding the top leadership slots and contributing funding,” the U.S. congressional report said.
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