Saturday, December 08, 2018

You should make friends when you are strong.

Three days back the Chief Financial Officer of Chinese technology company Huawei, Meng Wanzhou was arrested in Canada on a warrant issued in the US. Support for the arrest seems to be bipartisan. Republican Senator from Nebraska, Ben Sasse said, "Sometimes Chinese aggression is explicitly state sponsored and sometimes it is laundered through many of Beijing's so-called 'private' sector entities that are in bed with Xi's communist party." Democrat Senator from Maryland, Chris Van Hollen said, "We need a comprehensive plan to hold the Chinese and their state-sponsored entities accountable for gross violations of the law and threats to our security." The Pentagon stopped selling Huawei and ZTE smartphones from its stores in May. Australia banned equipment from both these companies for its 5G network in August. British Telecom (BT) will not source any equipment from these companies for its 5G network. BT has also resolved to remove Huawei equipment from its 4G network. In June ZTE paid a $1 billion fine for breaking US sanctions on Iran and North Korea. Meng was arrested on warrant issued by a judge in the US District Court for the Eastern District of New York and was produced in court yesterday. The US has requested her extradition. China reacted furiously to her arrest, terming it "extremely nasty" and issued a warning to Canada. "China strongly urges the Canadian side to immediately release the detained person....otherwise Canada must accept full responsibility for the serious consequences caused," said a Chinese statement. In October a Chinese, accused of spying, was extradited from Belgium to the US but did not excite such fury from China. So why the fury this time? Because Meng happens to be the daughter of the founder of Huawei Ren Zhengfei, which has made the Chinese elite extremely angry and fearful. "The wealthy have already been worried for a long time about their safety and their wealth in America," said corporate lawyer Tao Jinzhou. "If the US is going to pursue corruption and extraterritorial laws, that will increase." This is not just about a trade war but about who will dominate technology in the future, wrote N Smith. Therefore, "It seems likely that US tech companies, as well as military intelligence communities, are influencing policy here as well." "The fact that Europe, which has opposed Trump's tariffs, is copying American investment restrictions, should be a signal that the less-publicized high-tech trade war is actually the important one." China deserves its progress, wrote Prof Zhang Jun. "The reality is that, despite its imbalances, China's economic rise over the last 40 years has been extraordinary, and was achieved by its successful policy of committed structural reforms." The truth is that the US has friends in Europe, Australia, Canada and Britain, among others, China only has Pakistan and North Korea. It has alienated all its neighbors by its brutish aggressive behavior, wrote Prof B Chellaney. Pity, Confucius said nothing about 'a friend in need'.

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