Well-known Chinese news site Sohu recently reported that the U.S government is undertaking an unusual “encirclement campaign” to work with its allied countries to cut off Huawei’s breathing room internationally. These governments include Germany, Italy, and Japan. The U.S. excuse for the campaign is national security and these countries all have U.S. military bases. The U.S. argued that the military operations have partial but significant communications dependency on the local communications infrastructure, and Huawei’s equipment introduces uncertainty and security concerns into that infrastructure. However, Huawei is now the world’s largest communications equipment provider (around 22 percent of the global market) and has a competitive pricing advantage. Realizing Huawei’s pricing power, the U.S. government has been offering subsidies to the allies who obtain communications equipment from any non-Huawei suppliers. For years, the U.S. government has also been mounting pressure on domestic Huawei buyers such as Best Buy. The Chinese Ministry of Foreign Affairs said it had no detailed knowledge and was unclear about the situation, but that China always asks its companies to obey domestic laws in foreign countries.
Source: Sohu, November 24, 2018