Opinion | Why a settlement with Huawei rather than cutting it off is in the US’ best interests

Washington views the Chinese telecommunications equipment firm Huawei with deep suspicion, believing that the company can be used by the Chinese government to harm Huawei’s business partners and customers. Leading American officials are urging other nations to refuse to do business with the Chinese conglomerate. If Huawei does appear to be a security threat, however, is cutting off links to it the best way to manage the problem?

Under the administration of US President Donald Trump, there have been growing calls to “delink” the US and Chinese economies, to prevent China from leapfrogging ahead of America in advanced technologies through cyber theft and industrial policy.

American defence contractors are already forbidden by law from buying Huawei equipment, and some advocate a ban on all trade with Huawei, including the export of American made and designed parts that could help it become the world leader in 5G communications, the next generation of wireless and ubiquitous communications. Universities are being cajoled into excluding Chinese students from scientific work.

Huawei and its personnel have been taken to court in the US for allegedly committing crimes that include fraudulent acts to mask dealings with Iran that violated international and US sanctions.

The company’s chief financial officer and the daughter of its founder, Meng Wanzhou, was arrested in Canada and awaits the country’s verdict on the US request for her extradition. In the aftermath of Meng’s arrest, two Canadian citizens are being held on unrelated and unclear national security charges in China, which many suspect is Beijing’s way of pressuring Ottawa.

As the cases related to Huawei unfold, the stakes and costs are likely to get even higher. America’s close allies in Germany and the United Kingdom are signalling that they will not be rushed into banning Huawei from their markets, despite growing pressure from Washington.