The Digital Geopolitics Map of 5G: Why the USA is hunting Huawei Chinese Big tech
Ren Zhengfei founded Huawei with 21,000 yuan, about USD$5,000 at the time. Soon half of us will have a Huawei smartphone connected to its 5G Networks.
Story’s Table of contents:
- What or who is Huawei?
- Why does knowing anything about Huawei is of any importance?
- Traditional geopolitics and digital geopolitics in the world of networks
- Current 5G geopolitical map and why Huawei is dominating
- Concluding remarks
What or who is Huawei?
Can you imagine a company that looks like an empire worth billions of dollars? With palaces full of mimicry monuments of the whole world?
This is Huawei is the biggest tech company, whose name is increasingly present in newspapers around the world. In 1987, Ren Zhengfei (任正非), a Chinese engineer and member of the CCP, founded Huawei with 21,000 yuan, about USD$5,000 at the time.
Why does knowing anything about Huawei is of any importance?
I can say the reasons are many. Huawei has become the world’s largest manufacturer of telecommunications equipment. Among those: PC, Tablet, Wearable, Router.
The second-largest manufacturer of smartphones (Fig. 1), their numbers are incredible and their productions and sales continue to grow on all continents. Their smartphones are innovative and cheaper. This means all of us have a big probability of buying one of them in the future as a substitute for our Apples or Samsung.
However, Huawei’s golden eggs, which placed China as one of the most important technological players in the geopolitics of networks, it is the 5G network.
5G is the new fifth-generation mobile network. It differs from its 2G, 3G and 4G predecessors in that 5G is designed to handle a large number of devices and high data rates. Gökhan (2020) says that 5G networks are composed of three layers of networks:
1- First is the enhanced mobile network, which makes the communication flow faster. For example, 5G shortens the duration of movie downloads from 7 minutes to 6 seconds.
2- The second is ultra-reliable low-latency communication, which allows connection to autonomous vehicles. This low latency usage makes the connection 60 or 120 times faster than 4G.
3- The third is machine-machine communication, which allows communication between machines (Gökhan, 2020).
Steven Wu, senior product manager at Huawei, comments on the revolutionary aspect of 5G technology: “4G has changed lives, but 5G will change society”. Its application in the industry will be one of the most important trends of 5G.
Traditional geopolitics and digital geopolitics in the world of networks
The enormous effect of 5G on society and the economy attracts not only competition between companies, but also a geopolitical confrontation between states. Traditional geopolitical competition for control of fixed territories and natural resources, such as the imperial struggle for Africa and/or for political influence in the cold war, is being replaced in a rapidly changing world.
In this world, characterized by interconnection and interdependence within large-scale networks, territories without fixed and clear borders have emerged. In these territories with no clear boundaries, 5G technology starts a new industrial revolution and changes society on a large scale, creating innovative technological infrastructure operations.
New technological and infrastructure developments, especially those connecting networks that integrate people, businesses and machines, have given geopolitics a new and unprecedented space. Thus, the struggle for power between great powers remains, but undergoes a phase transition, migrating to the space of networks. In this new era of technology, geopolitical competition has taken place, above all, in transnational networks.
Since networks have a large effect on the organization of the economy, political and social order, the competition for power in networks has begun and has shaped geopolitical confrontation. The confrontation over the development of 5G technology between China and the US is the latest example of this competition.
China and the US strive to gain dominance in the generation and operation of 5G networks. In Internet connection networks, surpassing other players offers enormous advantages, as it allows a country to influence the operation of several networks at the same time.
Therefore, it is no wonder that the geopolitical struggle for networks is mainly focused on the development of 5G. These changes and technological development affect the dimension of geopolitics like never before.
Despite the involvement of other actors, states remain the main actors in digital geopolitics. However, their goals and methods change. Network flows, unlike fixed territorial units, cannot be contained or controlled, only influenced.
Thus, states gain power in networks by building and cultivating dependencies. Creating dependencies is related to generating the flow source.
This allows the grid generator, such as 5G, to leverage the flow to other countries that need access to that grid. A first-mover advantage, which is gained by being the first to create the networks. This is vital for influencing their operationalization. Therefore, it is to be expected that states will rush to gain the advantage of being the pioneers in the creation of technological networks.
Current 5G geopolitical map and why Huawei is dominating it
In this new global technology competition, China has already surpassed the US in developing 5G technology thanks to Huawei and intensified its efforts to reach the global market.
In addition to building railroads and roads, China is also engaged in the development of digital infrastructure for countries that have lagged behind in this type of technology. China’s efforts to upgrade the digital infrastructure include establishing fibre optic cable networks over which 5G networks flow.
Thus, given its importance, the configuration of 5G networks has become increasingly politicized, because as mentioned, influencing 5G networks in another country offers a significant advantage. This means
Currently, there are three companies that provide 5G technology:
- the Chinese Huawei
- the Finnish Nokia
- the Swedish Ericsson.
However, the share of R&D (research and development) that Huawei has allocated to 5G is greater than that of its competitors. In 2017, Huawei’s 5G R&D budget is approximately $15 billion, exceeding the total investments of Nokia and Ericsson, $6 billion and $4.6 billion, respectively (Gökhan, 2020).
Thus, Huawei assumes a leading position in the development of 5G. As a result of this dominant position in R&D, Huawei was able to put China at an advantage in the global game.
This position focused on the R&D of 5G networks places it as the focal point of the geopolitical struggle between China and the US. Huawei’s close ties to the Chinese government raise suspicions about its intentions to influence 5G networks.
These suspicions were amplified by the US, especially in the Trump administration, to sabotage Huawei’s centrality in the production and distribution of the 5G.
In fact, Huawei’s recent expansion was made possible by two major Chinese government initiatives: Made in China 2025 and the Belt and Road Initiative.
The Made in China 2025 plan encourages Chinese companies to produce high-value technological products. 5G technology constitutes an important target within this strategic planning.
The Belt and Road Initiative, on the other hand, is a project that aims to connect China with the rest of the regions, emphasizing financial, infrastructure, policy and person-to-person connectivity. Digital connectivity is one of the key components of the project. Using these fibre optic cable networks, Huawei is able to penetrate the 5G networks of Belt and Road participating countries.
Being marginalized in 5G network development, the US sought to restrict Huawei’s access to the global market. However, as we can see in Figure 2, in overcoming the challenges imposed by the United States, Huawei continues to have significant success in digital geopolitical networks. It has expanded its reach to many countries, which have accepted it as a 5G provider.
Despite the US trade restriction on Huawei and its continued quest to convince its European allies to remove Huawei from its 5G infrastructure, most EU countries have denied this option. Considering the fact that the EU is not yet seriously investing in the development of a coherent European policy towards 5G, Europe remains a battleground for China and the US.
Gökhan (2020) points out that in June 2019, Huawei acquired 50 of its 5G commercial contracts globally, of which 28 were signed in Europe alone. This contract continues to allow Huawei to develop 5G technology in their countries, with some exceptions such as Romania and Poland.
As we can see in Fig.2, the red spaces are already confirmed Huawei customers, the pink ones are countries that are considering contracting Huawei’s 5G and testing it.
This digital geopolitical map shows how the 5G network game in Europe, Africa and the Americas is very favourable for China’s victory. Globally, the US has only fully convinced Australia and Japan not to include Huawei in their 5G development plans (blue areas Fig.2).
This map of 5G networks makes it clear how the US is being surpassed in 5G development. If they don’t offer a cheap and viable alternative to Huawei, then, despite security concerns due to Huawei’s affiliation with the Chinese government, countries will likely continue to award contracts to Huawei to upgrade 5G technology, until the entire map turns red (Fig. 2).
Concluding Remarks
5G technology has far-reaching consequences for our and other people’s and countries’ lives. The enhanced level of communication, facilitated by 5G, will allow companies to access data and make decisions faster.
5G not only provides connections between people and between machines but reveals a system in which machines are integrated into critical infrastructure, which improves human life in many of its dimensions, making our lives easier and more connected with everything else.
As the development of 5G brings global implications for the possibility of integration in the most diverse existing networks, the competition between actors such as nation-states and multinational companies will continue to move the game of the new geopolitics of networks.
Despite all the articulation of new geopolitical maps, this will only be one of the consequences of 5G technology in the social sciences and in everyday life.
Furthermore, even with the US attempts to impede Huawei’s growth, the fact that it holds the largest package of patents in 5G technology will surely make it fight back and continue influencing and changing the map of digital geopolitics.
As in the well-crafted metaphor of its founder Ren Zhengfei, using the famous photo of the WWII IL-2 plane (Fig. 3), they “will continue to fly even after being hit by anti-aircraft projectiles and machine-gun fire from other planes.”
Fig. 3: plane IL-2:
References and further reading
- Huawei, 5G Network and Digital Geopolitics, August 2020 Gökhan Tekir:
- “Ren Zhengfei Modeled After Mao”. Matthew Forney. Forbes Magazine. 18 April 2005.
- “Huawei Loser in SoftBank-Sprint Deal Over Alleged Spying”. Bloomberg. 30 May 2013.
