The US Federal Communications Commission (FCC) on Friday banned five Chinese firms from selling communications equipment in the US, citing the catch-all excuse of “national security,” a move Chinese experts warned will only hurt the global value chain and will definitely backfire.
The FCC “adopted new rules prohibiting communications equipment deemed to pose an unacceptable risk to national security from being authorized for importation or sale in the US,” read a statement released on its website.
Chinese leading technology firms Huawei, ZTE, Hytera Communications, Hikvision Digital Technology, and Dahua Technology were added to the list.
The US has been stepping up efforts to crack down on Chinese telecom operators over recent years. From ZTE, Huawei to China Telecom (Americas) Corp and China Mobile International USA Inc. “Nearly all Chinese telecom giants have been viciously targeted by the US,” Ma Jihua, a veteran telecom observer, told the Global Times on Saturday.
Yet, the impact of the latest ban on Chinese firms is limited, as many of them have reduced business operations in the US due to Washington’s hostile attitude, Ma said.
The so-called national security threat is groundless. It has become increasingly clear that the US’ crackdown has seen diminishing marginal effect; while Chinese technology firms can not only survive, but will keep grow robustly, experts said.
Huawei reported a 113.7-billion-yuan ($15.9 billion) net profit in 2021, surging 75.9 percent year-on-year. The firm’s total sales income totaled 636.8 billion yuan, according to the company’s annual report.
China and Chinese tech companies have been ramping up efforts in new technology research and development (R&D). Huawei’s R&D investment reached 142.7 billion yuan in 2021, accounting for 22.4 percent of its annual revenue. The 5G frontrunner has more than 6,000 chief experts and scientists, as well as over 100,000 engineers.
Over the past decade, China’s investment in science and technology has increased significantly from 1.03 trillion yuan to 2.79 trillion yuan, ranking second in the world, according to the Ministry of Science and Technology.
Instead of containing China’s development, the US’ “de-coupling” policies will only hurt the global industrial chain and world economic growth, as well as systematically degrade the US’ market environment and Americans’ livelihood, experts noted.