By Paul Tembe
In his recent tour of the European Union, Foreign Minister of China Wang Yi told his Italian counterpart that “China has no intention of launching any new Cold War. China is totally opposed to any kind of a Cold War”.
He added that those who promote a Cold War do so with the aim to promote their own interests with no regard for the rest of humanity.
China is the second largest world economy. This points to the fact that the US continues to enjoy the number one position as a global economic leader. However, the US has become increasingly wary of China’s ascent toward being a global leader in hi-tech industries such as 5G and next-generation information technology.
China’s advances in hi-tech industries have led to friction between the two nations. China is set to propel itself to a leading global position in accordance with its Made in China 2025 programme. This aims at China achieving 70% self-sufficiency in most hi-tech industries by the year 2049.
The US now seems to have lost the plot. It has tried every trick in the book to dictate unilateral terms that aim to keep its place as the world leader in all aspects of life.
Huawei, as the flagship of China’s technological advances, has had to bear the burden of the tussle between these two superpowers.
Actions against the global rise of Huawei may prove difficult for China. At present China lacks enough capacity to supply all components necessary for the continued rise of its hi-tech giants. Since May last year, the US has used access to semiconductors for Huawei as its lethal weapon. The move was bound to have a negative impact on Huawei as the US boasts a 50% global market share of semiconductors with China only at 5% capacity.
The US first placed restrictions on US companies that intend to export components to Huawei.
In May this year the US expanded these restrictions and demanded that chip-makers using US semiconductor equipment and technology globally ought to get approval before producing chips designed by Huawei and HiSilicon.
Huawei has, despite attacks on all fronts, managed to boast revenue amounting to $65 billion (R1 trillion) for the first half of this year. The figure represents an increase of 13.1% in earnings over the past year.
On August 20, the Bureau of Industrial Security in the US Department of Commerce put in place further restrictions on access to semiconductors and other crucial components for Huawei and its non-US affiliates. These measures aim to prevent Huawei from circumventing US export controls and cover the entire world. In short, whoever seeks to supply Huawei with components will need to have permission from the US. What do attacks on Huawei mean to China’s hi-tech industry growth? How will China counteract these seemingly devastating blows to its technological flagship giant Huawei?
The onslaught on the “Made in China 2025” programme by the US is reminiscent of events that took place during the 19th century 1st and 2nd Opium Wars. The attacks and unilateral demands then by the United Kingdom, similar to those currently posed by the US, seek to undermine China as a sovereign state. These attempts seek to undermine the achievements of peaceful co-existence and multilateral achievements among world nations. Such is the graveness of attacks on Huawei to the Chinese nation and the state.
It is therefore the duty of every nation to engage in actions aimed at preventing a Cold War. Nations ought to work together towards building an inclusive community with a shared future for mankind.
Tembe is Associate Professor at the Institute of African Studies Zhejiang Normal University, Jinhua, China. He is also based at the Thabo Mbeki African School of Public and International Affairs.