President Trump is sticking it to China, and it’s a good thing.
Trump issued an executive order limiting U.S. technology dealings with the Chinese intelligence cutout, Huawei. The order will neuter Huawei and thus damage Chinese President Xi Jinping’s imperialist global agenda.
But the real beauty of this action is how it guts Xi and Huawei’s central narrative. Namely, their claim that Huawei is self-sufficient and able to provide a rival service to U.S. competitors.
We’re about to see that claim tested. And I’m confident Huawei will end up red-faced.
Huawei’s basic problem is that it needs Google in particular to provide a competitive service. That’s because Google’s Android app system is the centerpiece of Huawei’s system. Considering that consumers — which Huawei needs — want the best apps rather than the crap that the Chinese Communist Party can dredge out, Huawei’s loss of Google is its effective neutering. People will soon have little reason to buy Huawei products unless they have a fetish for crap products and being spied upon.
It’s not just Google. Trump’s executive order also means that top technology firms such as Intel, Qualcomm, and Microsoft will end their Huawei engagement. That means Huawei will struggle to develop near-term alternatives to keep its business model alive. Yes, European technology firms may be able to fill in the gaps over the longer term. But by that point Huawei’s brand is likely to be in the gutter. Even then, the U.S. campaign to persuade Europe to divest from China will lead some big European firms to stick to American market access.
For too long Huawei has been able to play its way to market power and espionage ability. China hopes to persuade other nations to let Huawei keep spying, but American leadership is establishing ever more impenetrable roadblocks.
Trump deserves much credit for his China policy. Google wouldn’t have done this by itself.
