The 5G Leader of the World is a State Funded Company
The leader of 5G won’t be American
5G is one of the most critical technologies that will go live in the 2020s and Huawei is largely expected to dominate its future. In spite of pressure from the U.S. Huawei Technologies said on Monday April 22nd, 2019 that its first-quarter revenue jumped 39 percent to 179.7 billion yuan ($26.81 billion).
The Shenzhen-based firm, the world’s biggest telecoms equipment maker is also a smart phone leader that can overtake Samsung in units sold sometime in the next few years.
Beyond just rumor, we now know Huawei has perhaps an unfair advantage over other corporations. The U.S. intelligence has accused Huawei Technologies of being funded by Chinese state security.
Specifically the CIA says Huawei has received funding from China’s National Security Commission, the People’s Liberation Army and a third branch of the Chinese state intelligence network. Of course this is really interesting since Huawei is likely to dominate 5G and make 100s of $ Billions in the process.
China’s centralized approach to 5G means China, is pumping investments into the technology as a government initiative. As of mid 2019, Huawei said it had signed 40 commercial 5G contracts with carriers, shipped more than 70,000 5G base stations to markets around the world and expects to have shipped 100,000 by May.
Huawei has shipped 59 million smartphones in the first quarter of 2019 alone. Compare that with Huawei shipping 39.3 million smartphones in the first quarter of 2018.
The U.S. still lacks a clear 5G strategy that goes beyond attacking Huawei and is not expected to be able to compete globally. Even Germany and the U.K. have so far refused to give in to U.S. pressure to not go with Huawei where they cite security risks of Government backdoors.
What is 5G and Why Does it Matter to the 4th Industrial Revolution
5G is designed essentially to bring faster speeds and lower lag times than previous wireless networks like 4G and 3G. This will usher in the era of IoT and on-demand convenience like never before.
While much has been said about how the networks will give consumers faster downloads of videos or games, 5G is perhaps more importantly a potential game-changer for functions such as driverless cars or remote surgery that require quick, reliable internet connections.
Huawei as a private corporate entity is likely to become one of the most powerful companies of the future. As compelling as China’s new silk road is, Huawei is its internet of everything strategy to dominate the future of technology.
5G is one of the key pillars of China’s ambition to lead technology for the globe. This is before it catches the U.S. in artificial intelligence and a more efficient form of surveillance capitalism with more advanced facial recognition features for example.
Huawei is one of China’s most successful global companies. Its technology is used in more than 170 countries and its smartphones rival Samsung and Apple for market share. Huawei along with Alibaba and ByteDance are likely to keep growing in ways which it will be difficult for any American company to keep up with, this is because China realizes that it needs to push its technologies and products globally in order to secure economic superiority for the future.
Huawei is likely to scale it’s net revenue by at least 200% in the next five years and in the 2030s could become one of the most powerful technology firms ever built. This is because its 5G business will enable it to fuel R&D the likes of which accelerates IoT, smart phones and AI to the next era of enterprise and consumer experiences.
It’s fascinating that the U.S. believes Huawei gets financial backing from the Government. Earlier this year, U.S. intelligence shared its claims with other members of the Five Eyes intelligence-sharing group, which includes Britain, Australia, Canada and New Zealand, even as Huawei vigorously denies the claim. It would explain Huawei’s fast ascent into the upper echelon of corporate success stories.
It’s hard to believe these are merely “accusations”. Regardless Huawei is likely to be a bigger part of our future. China takes everything from green technology to the 4th industrial revolution a lot more seriously than does the U.S. thus China in many respects will own the future of 5G, electric cars, the future of E-commerce, robotics and so many other innovations in the years and decades to come.
The only solution for the U.S. is to align its government with its corporate leaders like Amazon, Google and Apple; which there’s every sign they have already begun to do. Amazon choosing Northern Virginia for its HQ2 isn’t exactly by accident. To compete with China, the U.S. might force capitalism into a shady place with its own brand of surveillance capitalism but it will be hard pressed to compete with the scale of companies such as Huawei.
The U.S. has reportedly tried to pressure other allied countries like Germanyand the U.K. to block Huawei from 5G, but neither country has done so yet. Trump going after Huawei and Meng Wanzhou, Huawei’s chief financial officer and daughter, along with authorities in the United States probing Huawei for alleged sanctions violations is perhaps the worst diplomatic mistake the U.S. has made in recent memory.