Wednesday, May 22, 2019

Marko Marjanovic — Big Blow for Huawei as Japanese, Korean, British Firms Reconsider or Suspend Cooperation as Well

Huawei’s suppliers in Japan, South Korea, Taiwan (ROC), and Britain are examining if they can continue to make business with Huawei, while some have already declared a suspension in cooperation.
The issue is that these non-American companies nonetheless use some American components of technology, and if they proceed they will be sanctioned by the US themselves.
It is the same reason why Russia’s Sukhoi did not in the end sell its SSJ-100 airliners to Iran….
Apparently some have forgotten that Nazi Germany was way ahead of the West in development of rocketry, jet aircraft, and atomic weapons. The US instituted the Manhattan Project to catch up.  And remember how MIG-15's ended US control of the skies in Korea? The US had to scramble to bring its own jets into service as quickly as possible. Certainly, China and Russia will try to do the same to become self-sufficient in technology, and they have the resources to do so if they choose. Now they have no choice.

Skeptics point out that this will take time. Well, both China and Russia are in this for the long haul. The tech world is splitting, whatever that will entail subsequently.

In the end, these countries that the US views as adversaries will emerge stronger and more self-sufficient, and they will also be stiffer competitors in the global economy. Russia and China will also be forced to cooperate out of necessity, deepening the fissure between West and Global North, and East and Global South.

Checkpoint Asia
Big Blow for Huawei as Japanese, Korean, British Firms Reconsider or Suspend Cooperation as Well
Marko Marjanovic

See also
Donald Trump’s former chief strategist Steve Bannon gave an impassioned account of what is driving the US war on Chinese tech firm Huawei… and trade has little to do with it. The US wants to destroy its competitor, for good.
Capitalism is about monopoly power. Free market competition as modeled by neoclassical economics reduces profit to costs, eliminating rents.

‘Shutting down’ Huawei ‘10 times more important’ than trade deal with China – Bannon


Zero Hedge
Expect A Long-Trade War: China Offers Tech Companies Five-Year Tax Break To Offset Tariffs
Tyler Durden


Kaivey said...

My new Honor 10 is awesome. I had a Windows phone for years which I liked, but the technology in this new phone is off the planet, and it competes well with phones that cost twice the price. Apple must want this competitor out of the market, but their phones are manufactured in China too but sold at 70% profit.

Kaivey said...

From the article -

'Brendan Carr of the Federal Communications Commission, who said that companies that want access to US markets need to first prove they “share Western values.”

That's means endless war and looting.

Tom Hickey said...

"companies that want access to US markets need to first prove they 'share Western values.'”

In other words, put yourself in a box. Capitalism implies imperialism and colonialism, and currently neoliberalism implies neo-imperialism and neocolonialism. So-called free trade under neoliberal globalization is designed to further neo-imperialism and neocolonialism. See, for instance, Michael Hudson's Superimperialism

(pdf download)Super Imperialism: The Economic Strategy of American Empire by Michael Hudson 2nd edition 2003