There is no doubt that the global geopolitical climate has changed significantly since 2016, thanks largely to the election of Donald Trump as the President of the U.S. One of the key manifestations of this is Trump’s uniquely protectionist approach, which has led to an ongoing trade war with China and other nations across the globe. Last year, the U.S. imposed three rounds of tariffs on more than $250 billion worth of Chinese goods, whilst the Asian nation’s government responded in kind by imposing similar tariffs ranging from 5% to 25% on $110 worth of American products.
We’ve also seen a high-profile row surrounding the rollout of 5G technology that has originated in China, and this shows no sign of ending anytime soon. But how will the U.S. ban on these Chinese tech companies affect the development and rollout of this technology?
What is 5G Technology?
In simple terms, 5G technology represents the next generation of mobile broadband, and whilst it may be the latest in a long line of upgrades, it is promising to revolutionize the potency of networks across the globe.
For example, it’s thought that 5G will be up to 100-times faster than its predecessor, translating into dramatically superior download and upload speeds.
We’ll also see latency decrease dramatically as 5G is rolled out globally, and this will deliver a wide range of benefits to customers.
This relates to the speed with which devices are able to communicate with one another across wireless networks, so it has a number of commercial applications in the digital age.
Why is The U.S. Doing About 5G?
As the tensions between China and the U.S. have intensified, White House has pledged to ban all 5G technology that emanates from China and market-leading brands such as Huawei.
From Trump’s perspective, it makes perfect sense to target 5G technology and undermine key market players such as Huawei.
After all, China is expected to invest a staggering 2.8 trillion yuan (or $411 billion) on developing 5G mobile technologies between 2020 and 2030, as the nation focuses on making telecommunications infrastructure one of its core global exports.
At the same time, Trump’s protectionist administration remains committed to ensuring that the U.S. becomes the seminal leader in 5G technology and regains the technological edge that it has surrendered during the last two decades.
This comes against a backdrop which will see China supersede the U.S. as the world’s leading economy by the year 2030, and this is undoubtedly something that President Trump wishes to rail against.
How are U.S. Firms Responding to the White House’s Stance?
Whilst it’s thought by some that the ban will have an adverse impact on Chinese economic plans and potentially afford the U.S. an advantage in ongoing trade talks, it can also be argued that this will damage American firms.
Many tech leaders in the States have already lobbied the White House to avoid any long-term ban, in order to create a competitive market and access to affordable technology to companies of all sizes.
Some of these businesses may even look to seek legal advice if the ban persists, with a select few thinking that the President is exceeding his powers by restricting activity within the private sector. Firms like Withers Worldwide are available to provide guidance on this issue, particularly as the landscape continues to shift and trade negotiations continue.