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Do Chinese Companies pose a Threat to US National Security?
Pinnacle Digest writes: China is beginning to fear that 'contagion' effects from “demonized” Chinese enterprises will spread throughout the western world.
This comes after the congressional intelligence committee released a report which concluded that Chinese ICT enterprises Huawei (SZ:002502) and ZTE (PINK:ZTCOF) are threats to US national security. Although not yet binding, the report is unsurprisingly causing a backlash from Chinese trade ambassadors.
Wang Jiangyu, Deputy Director of Center for Asian Legal Studies, believes that the report is a biased assertion with a political end rather than one based on facts and careful analysis. He used an old Chinese proverb, by stating, “He who has a mind to beat his dog will easily find a stick.”
As countries fight to expand their economies and add jobs, one has to be pragmatic when evaluating the reasons behind accusations.
Fitch, in a recent statement, noted that, “In January, India’s Department of Telecommunications warned of potential security issues not just with the Chinese manufacturers, but also with vendors from the U.S., Europe and Japan, and hence emphasized the need for India to become more self-sufficient in telecoms network technology.”
Wang Jiangyu commented that, “Although the report is not a judicial decision or a legislation, which is legally-binding, it may still cast a shadow on the overseas development of Chinese enterprises.”
Wang explains that the report may affect not just the short-term but also the long- term expansion of Chinese enterprises in the United States. As a result, people may naturally think that it is incorrect, in political term, to cooperate with Chinese enterprise like Huawei and ZTE.
“What’s even worse is that the judgment may spread to the other countries all over the world, where people, companies and governments may no longer do business with these Chinese companies, ” Wang added.
You be the judge of whether or not the US is escalating its efforts to curb China's global growth.
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Community Talk
Re: Do Chinese Companies pose a Threat to US Natio ...
this is mainly the US spinning its wheels.. sadly its doing it with taxpayer dollars! I'm sure there are times with knock off products or stolen information (building techniques) where China is at fault.. but its a rareity that makes it into US borders.
Re: Do Chinese Companies pose a Threat to US Natio ...
Completely agree Lloyd. The US trade policy is turning into protectionism at its finest. When a country is scared of competition, it typically pulls a move like what the US is doing now. Protectionism doesn’t work and the US uses the term ‘threat to national security’ way too loosely. The US needs to wake up, embrace competition and stop slandering the rest of the economic powers. China has its issues, but this stinks of protectionism.
Re: Do Chinese Companies pose a Threat to US Natio ...
You know it's funny when you think about it. for years the US has trashed many countries includind Canada and other around thw world. Sure there was lots of squakfrom these countries.but the US still got their way. Now you have a new player in the game and they are going to push to atchive what the US has. Can you blame them. About time the US learned to pull in their horns, as they no longer have the power with their debt. Some times you can learn a lot from history........