Posted by on September 30, 2019 6:26 pm
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By Dan McGroarty, TES GeoPolicy Editor


With China’s October 1 celebrations of the 70thAnniversary of the Communist Party’s rise to power just hours away, make time for this Gordon Chang must-read, from the Gatestone Institute:  Huawei Wants the World’s Next Trojan Horse to Be Chinese



Chang quotes a U.S. Department of State official as telling reporters last week “that the Trump administration is unlikely to grant another 90-day blanket waiver for [U.S.] transactions with China’s Huawei Technologies” – the PRC’s 5G communications giant.  The Trump administration has twice granted 90-day waivers that allow U.S. companies to deal with Huawei, despite the fact that in May, the U.S. Commerce Department added Huawei to its “Entity List.”  



As Chang explains, “The designation meant no American company, without prior approval from Commerce’s Bureau of Industry and Security, could sell or license to Huawei products and technology covered by the U.S. Export Administration Regulations.” 



The new State Department announcement means that, when the waiver period ends on November 19, Huawei goes back on the List. 



In an effort to keep Huawei’s links to U.S. businesses open, Chang notes that Chinese tactics are changing.  Bluster and threats in the context of the trade talks have given way to offers of conciliation and cooperation – as in Huawei founder Ren Zhengfei’s trial balloon earlier this month that he would be “open to sharing our 5G technologies and techniques with U.S. companies, so that they can build up their own 5G industry.”



“The catch?” Chang asks:  “Acceptance certainly means the dropping of Huawei from the Entity List and, in all probability, the repeal of prohibitions on the installment of Huawei equipment in U.S. networks.”



For Chang, it’s a deal the U.S. can and should refuse:  “…why should President Trump allow our companies to help Beijing steal the world’s data and remotely control devices connected to the internet?” 



Or, to paraphrase Virgil, beware Chinese bearing wicked fast streaming 5G.



Chang’s final thought, as China marks the 70thanniversary of Mao’s “People’s War of Liberation:”  “We did not win the Cold War by enriching the Soviet Union. We should not try to enrich China now.”



Daniel McGroarty, TES GeoPolicy editor, served in senior positions in the White House and Department of Defense, and has testified in the U.S. Senate and House on critical minerals issues.  McGroarty is principal of Washington, D.C.-based Carmot Strategic Group, and president of the American Resources Policy Network, a non-partisan virtual think tank dedicated to informing the public on the importance of developing U.S. metal and mineral resources.  The views expressed here are his own.