In early January of 2019 in Poland arrested a member of the Chinese Corporation Huawei. This was a continuation of a chain of events associated with the “failures” of Chinese companies in the West. Arrests, investigations, extradition employees of the Telecom giant resemble military action. Moreover, such hard that they can hardly be called part of the so-called trade war between the US and China: engaging the judiciary and security services makes the situation much more serious. On the global fight tech giants in his article for “” said the businessman, venture capitalist and composer Alexander Shulgin.

Strategic investments

To understand the true causes, it is necessary to look at the history, dramatically evolved a few years ago. Then the American company Qualcomm, the market leader in mobile communications (LTE, 5G, LTE-U, etc.), agreed to acquire the European leader semiconductors NXP Semiconductors.

Only the most sober analysts saw this acquisition a strategic step and a huge investment in the future. What’s in these semiconductors, why pay more than 44 billion dollars — an amount approximately equal to the cost of the Russian gas giant “Gazprom”?

The fact that Qualcomm, which owns patents and, in fact, controlling the communication of LTE and future 5G, 6G and LTE–U, becomes after 2020, a new global leader. 5G and more advanced technologies, the most intelligent chipsets, which Qualcomm is the undisputed leader and semiconductors is the basis for the digital economy of the future, which is rapidly approaching the world.

According to the world Bank, in a short time in the “figure” will focus two-thirds of the world economy and global gross domestic product. It and smart cities, and smart manufacturing, the Internet of things and Industrial Internet, and all social life.

This is well understood by Chinese strategists and their flagship Huawei. Besides, in the near future the widespread adoption of technologies of distributed registries blockchain will make it difficult to copy other people’s development often suffers from the celestial Empire. The Chinese know this and are taking steps to strengthen its technological position.

Plan of attack

Entry was made through the Singapore Corporation, Broadcom — primary partner Huawei. Broadcom has decided to acquire the us company Qualcomm, which develops wireless communications systems. Budgets for the acquisition was allocated — $ 105 billion

But the first assault on the American technology of the fortress ended in failure. Be sold, even for such a large sum in Qualcomm didn’t want to. However, to just give up Singapore tech giant did not want and increased the price. But it did not help. It was decided to go the other way and push a deal on the merger through the Board of Directors, which in advance have introduced the right people and give them a substantial premium of 50% of the shares.

From such a generous offer to the Council could not refuse. At the same time as President was withdrawn by Paul Jacobs — the son of the founder of Qualcomm. It became clear what was happening banal raider seizure, major tech players sounded the alarm.

Qualcomm to snatch from the clutches of the Broadcom decided Intel. American giant alarmed in earnest, after absorption of Qualcomm Broadcom could inflict on him a terrible blow and put an end to his ambitions.

The American Corporation attempted to seize the initiative from Broadcom and Qualcomm has offered a fabulous sum. But this proposal was rejected — the company of the Jacobs family has its own plans for global leadership. To become a pawn in the hands of others she clearly doesn’t want to.

Technological America against Broadcom

Ambitions Broadcom not appreciated and in the Pentagon, which actively uses the Qualcomm products. In March last year the Director-General of the Singapore Corporation Hok tan met with officials from the U.S. Department of defense in an attempt to salvage the deal.

Tang tried to convince the Pentagon that the absorption of Qualcomm does not pose a threat to U.S. national security, besides, he stressed, the headquarters of Broadcom is not only in Asia but in the United States. Anyway, tried to convince military officials of the Tang, the transaction will be beneficial and useful to Washington.

But redecam from Pentagon Asian noodles had no taste, because Broadcom has tried to change the jump and imagine what Qualcomm is working in China’s favor, as they have a number of joint ventures in China. However, Broadcom did not mention that five years ago, Qualcomm was fired several Vice-presidents, including one ethnic Chinese, which was suspected of draining the strategic information of Huawei.

At the same time made a fuss of Microsoft and Google in General, stood on its hind legs, the entire process of America, who suddenly realized that the risk of losing the struggle for world domination. In Silicon valley, with horror, realized that the next revolution the digital revolution can leave them on the dusty roadside of life.

The will of the President

In a kind of “war of thrones” had to intervene the President of the United States Donald Trump. In March 2018, the White house blocked the absorption of Qualcomm. Trump noted that it has “convincing evidence” that the transaction at 117 billion can cause damage to the national security of the United States.

Broadcom from the point of view of the White house did not agree, but to influence the decision trump could not. The only thing that could make the Singapore — based company to publish a laconic press release of one and a half lines, which has denied the threat to the national security of the United States.

The fears of the Americans was stronger than the exorbitant proposed by Broadcom. Analysts have repeatedly noted that Qualcomm can make China a leader in the development of wireless technology 5G. Multibillion-dollar deal would give Huawei the opportunity in the coming years to take first place in the smartphone market. Given security concerns around the Chinese telecommunications companies, politicians, the United States simply could not afford to absorb Broadcom Qualcomm.

Oil poured into the fire challenges from Apple: the failure of competition from China led to the fall of the “Yabloko” almost twice. Trillion the company lost at a cost of more than Gazprom, LUKOIL and Rosneft together.

The Empire strikes back

In the end, the Chinese card was broken, and the Americans counterattacked. Even before the decree trump the U.S. secret service, stated that it did not recommend us citizens to use smartphones Huawei. Washington explained that the Chinese product “poses risks” pressure on the U.S. telecommunications infrastructure.

“It also means the risk of information theft and espionage,” — said the Director of the Federal Bureau of investigation (FBI) Christopher ray. CNBC reported that the FBI and the CIA suspected the Chinese company, in close cooperation with the government of China.

In December last year as a bolt from the blue, there have been reports about the arrest in Canada of the daughter of Huawei founder Ren Jenvey Meng Wanzhou on charges of violating us trade sanctions against Iran. Washington demanded her extradition to the US. Later, a Chinese citizen was released on bail. But all became clear — the war for technological leadership in full swing.

Further — more. The other day in the influential American newspaper The Wall Street Journal reported on the investigation against Huawei on suspicion of theft of commercial information from American companies. According to preliminary data, stolen data Corporation related to the equipment of the American company T-Mobile checks for smartphones. It is possible that the proceedings related to the lawsuits against Huawei in Seattle, where the Chinese were accused of misappropriation of the laboratory.

The fight between the tech giants is for life and death. At stake is too valuable prize is dominance in the digital world of the future. Who will win this war, he will define the technology architecture of tomorrow. The stakes are too high, the bitterness will increase.

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