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

As American allies like the UK and Germany seem unlikely to ban the Chinese telecoms giant, the US should capitalise on its current position of strength to negotiate an agreement that constrains Huawei’s ability to pose a security threat

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Douglas H. Paal

Douglas H. Paal is a nonresident scholar at the Carnegie Endowment for International Peace.

Published: 2:02am, 27 Feb 2019Updated: 4:51am, 27 Feb 2019

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.