On Tuesday, it was announced that Chinese telecommunications company Huawei will be working with Hungary to roll out the country’s high-speed 5G network.
Huawei has been under a lot of scrutiny involving the level of security and privacy that users will have from its technology. Because of this idea that Huawei might be untrustworthy, the United States has been keeping Huawei at arm’s length. The U.S.’s view of Huawei has put a lot of pressure on its allies, including Hungary, to shut out Huawei.
The Chinese company is one of the leading telecom equipment vendors and has a global market share of 29%. The U.S. believes Huawei’s equipment contains “back doors” that would allow China to spy on other countries. Huawei has denied those harsh accusations.
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Back in May, the Trump administration put Huawei on its “Entity List,” which prevents the company from buying parts and components from American companies without U.S. government approval. However, earlier this month, U.S. Commerce Secretary Wilbur Ross told Bloomberg that licenses for American companies to sell components to Huawei should be coming “very shortly.”
After the Trump administration’s decision in May, a Huawei spokesperson said that the decision “will only serve to limit the U.S. to inferior yet more expensive alternatives, leaving the U.S. lagging behind in 5G deployment, and eventually harming the interests of U.S companies and consumers.”
After all, 5G is touted as the next technology revolution — a way to connect people and other groundbreaking technologies with more reliability and speed.
The rotating chairman of Huawei, Guo Ping, has worked at Huawei for over 30 years. He joined the company when it was 22 years old. During a Web Summit technology conference in Lisbon, Portugal, he said:
5G plus ‘x’ will create a smart new era. This ‘x’ can be AI, big data or VR/AR, among other technologies. As you all know, 5G deployment has just begun. AI’s applications for a range of industries are still in their infancy. I believe that in the future, 5G plus ‘x’ will create countless possibilities for entrepreneurs.
The technology is going to change our lives and the world. And that’s why Huawei is extremely focused on making the push into 5G at all costs, so it can become one of the leaders in 5G and connect the world. During the summit, Guo compared 5G with one of the biggest inventions, electricity. He said:
In 1875, Paris train stations started using electric lights. In 1879, a power plant in San Francisco started to sell electric power. These were historical changes. Later in [the] twentieth century, electricity significantly increased productivity in all industries. Humanity entered the electric age, just as the age began with electric lighting. 3G and 4G solved the problem of connecting people. 5G and AI represent a tipping point for ICT technology. This technology will further be applied in all industries, like electricity was over a century ago. This makes ICT a key enabler for industry development.
Information and Communication Technologies (ICT) is going to be revolutionized because of 5G and AI, and it’s only a matter of time. Hungary doesn’t want to be left behind and wants to be a part of this revolution in technology, and that’s why it has joined with Huawei to make it all possible.
Hungary hasn’t indicated that there is any evidence of Huawei’s equipment posing any type of security threat, which is why the country and the company will work closely together to roll out 5G.
Hungarian Prime Minister Viktor Orban’s government has become closer to China, not just with 5G technology but also with government finance, banking, and infrastructure. Infrastructure projects include the high-speed railway that’s under Beijing’s Belt and Road infrastructure initiative.
Until next time,
Jennifer Clark
Pro Trader Today