Without high technology in the digital world not enough — still, whether it be memory or important operating systems. Even the most gorgeous smartphone, but not having the latest hardware and software, will quickly become unsaleable goods. And just now it threatens the company “Huawei”, the second largest mobile phone manufacturer in the world, because of U.S. sanctions on future models “Huawei” will not be provided with the services of Google (Google). In addition, the company is likely to experience significant challenges with the purchase of memory chips in the United States.
Doclanding: we Have telephone communication, Jan-Peter Kleinhans (Jan-Peter Kleinhans) of digital analytical center “Foundation New responsibility” (Stiftung Neue Verantwortung).
Mr. Kleinhans, good morning!
Jan-Peter Kleinhans: Good morning!
— How to understand that threatens the company “Huawei”? Chinese concern from a technical point of view are going to starve?
— You could say that, all due to the decision of the US administration, which last week acknowledged “Huawei” and its 68 subsidiaries is a threat to national security. This automatically means that now American companies will be extremely difficult to conduct any business with “Huawei”. That is, Google only complied with the US administration and in accordance with this virtually ceased business relationship with “Huawei”.
As you rightly pointed out, on existing phones, it will affect only relatively, because Google has clearly stated that the phones “Huawei” will continue to receive security updates and have access to “Google App Store” (Google App Store). The problem will be, however, future devices, new developments, because for them Google has no right to issue “Huawei” license. In reality, this means that “Huawei” although will continue to release innovative phones, but their software will not be supplied with a full package of services “the Google”, that is, there will be no “YouTube” (YouTube), search, access “App Store” will not be updates.
In the overall context of a trade war between the US and China
Whether this reaction of the company “Google” proportionate, or is it rather the expression of obedience to Washington, anticipating future events?
— I’d say that’s an understandable reaction, and I think that deserves criticism here, rather the U.S. administration, which, as we have seen, went back on their word and provided a 90-day temporary license to cooperation with “Huawei”. I mean, last week ruled that “Huawei” is a threat to national security, but a couple of days later thought about it and decided that she still can do business further. It leaves me a mixed impression, and I believe that all this must be considered in the overall context of a trade war ongoing between China and the United States. That is, I think, on the foreground there is not information security and not a technical conclusion, according to which the products “Huawei” allegedly pose a threat to national security, and the calculation of the US administration using “Huawei” to exert overt pressure on China during a trade war.
— But there is still and charged with espionage, according to which “Huawei” are supposed to engage in espionage on the instructions of the Beijing government. These charges are not proven. This is not a step — that is, the sanctions are too strict, because in the end it can cause a huge concern will be brought to its knees? Or could all of this intentionally, isn’t all this an attempt to get rid of a competitor?
— I think the latter accurately reflects the essence. It was seen very well. A few weeks ago, the Ministry of defense published the report of its Council on innovation about 5G, and this report clearly States that it is not so much about information security and the threat of espionage, but about technological superiority. In recent years we are accustomed to U.S. leadership in information technology and 4G is the current generation of mobile communication. But now the market has a lot of Chinese players, such as “Huawei” or “ZTE” (ZTE), manufacturing innovative and highly competitive products the next generation — 5G. That is, someone undermines the throne of the United States. The USA use to fight them its a trade war with China, and then “Huawei” — really a perfect means of pressure, because the Chinese industry in General is still very heavily dependent on us media companies and American semiconductors.
Some in the field of semiconductors, China still lags behind
But on the other hand, China now produces their own memory chips. They have their own software. If “Huawei” to use some spare strategies?
— I think that the present measures of the U.S. administration will strengthen China’s desire to accelerate the establishment of strategic autonomy and to invest more resources and money in private industry of information technology, in the future helpful to produce powerful processors, powerful memory chips and the like. But while China can not. Experts believe that in the field some semiconductors China is still behind by two or three generations. However, such measures, which, as we have seen, takes US, will encourage him to catch up in this area.
But on the other hand, I must say that mobile phones or smartphones without the services Google will certainly lose its appeal for many buyers beyond the Chinese market.
— Of course! In the past, many contractors — “Amazon” (Amazon), Microsoft (Microsoft), “Mago” (MyGo) and others tried to develop their own operating system, but that it was not possible to do because of “Google” and “Apple” (Apple) has created an exceptionally powerful ecosystem to achieve a level which is not so easy.
Something that the us administration has “Huawei” such pressures will not affect the industry as a whole? Is it possible to make any predictions?
— I think it will greatly depend on how intensely the US administration will act in the opposite direction. If de facto it has been officially said about the threat to national security, but at the same time continues to issue temporary licenses, as I think, the damage will not go beyond acceptable limits. If the administration is to escalate the situation and really go for long embargo for “Huawei”, then it really will affect not only the final products of the company. We must not forget that “Huawei” has been offering infrastructure services, manufactures equipment for networking in this area depends on American technology. For the world it would mean that slow development in the field of 5G and that generally there is considerable collateral damage.
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