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Andrew Korybko — Huawei is Being Targeted Because of the “Tech Arms Race,” Not the “Trade War”

Summary:
Being unable to compete in terms of the technology itself or the pricing thereof, the US is instead forced to resort to so-called “lawfare” and infowars in order to undercut its Chinese opponent. The replacement of outdated American technological infrastructure with updated Chinese systems will also deal a heavy blow to the NSA’s ability to vacuum up countless communications, which is probably the real reason why the US is in such a frenzy to stop Huawei from expanding to Europe and elsewhere at all costs. Considering the precedent introduced with its latest unilaterally imposed anti-Iranian sanctions regime, Washington might eventually countenance “secondary sanctions” against some of its partners that choose Chinese 5G companies over its own. In terms of the bigger picture, China is

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Being unable to compete in terms of the technology itself or the pricing thereof, the US is instead forced to resort to so-called “lawfare” and infowars in order to undercut its Chinese opponent. The replacement of outdated American technological infrastructure with updated Chinese systems will also deal a heavy blow to the NSA’s ability to vacuum up countless communications, which is probably the real reason why the US is in such a frenzy to stop Huawei from expanding to Europe and elsewhere at all costs. Considering the precedent introduced with its latest unilaterally imposed anti-Iranian sanctions regime, Washington might eventually countenance “secondary sanctions” against some of its partners that choose Chinese 5G companies over its own.
In terms of the bigger picture, China is challenging the US’ monopoly over most of the world’s information-communication technologies (ICT), leading to a sort of “bipolarity” whereby every country is being divided into two separate camps between these two technological superpowers. Seeing as how the future of practically all industries is linked to one extent or another to 5G technologies, it can be said that the US and China are vying with one another for control over one of the fundamental components of the global economy, therefore making the “tech arms race” many magnitudes more strategically important than the comparatively much more publicized “trade war”.
Geopolitics Alert
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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