According to a piece by analyst Kevin Allison of the Eurasia Group (the firm founded by Ian Bremmer), the United States is now pressuring its allies to reject Huawei`s 5G equipment – Japan, New Zealand and Australia have all taken the US “concerted strategy” to heart and are acting. The UK is also showing signs of keeping China out. Japan, a close ally of the United States will reportedly stop buying Huawei and ZTE network equipment. Australia and New Zealand have also banned Huawei from participating in building their 5G networks which is the next generation of mobile technology expected to revolutionize the interaction between the internet of connected devices and appliances. This was reported in an article on CNBC, we are paraphrasing. China is under pressure.
On CNBC Allison pointed out that the US is pressuring allies to exclude China, Huawei, from participating on projects. He said that 5G is a “geopolitically consequential network upgrade.” And that such technologies are going to set the tone for the rest of the 21st century. He also pointed out that there will be intense competition in areas such as stronger militaries and of course stronger economic growth. The South China Sea will be an area in which China and the US will continue to challenge each other as China expands into areas that it views are part of its territory. India, the United States, Japan, Vietnam and other naval powers will actively test Chinese power.
Ian Bremmer`s group, Eurasia publishes work on these events on a regular basis.
The US-China trade war, in our view at Classiarius is going to expand and get much worse in the coming two years as the issues are much deeper and are part of a web of competition in which China is challenging Japan, South Korea, India, Australia and New Zealand as well as other countries in the region. The trade war was elevated recently with the arrest of Meng Wanzhou, the CFO and daughter of Huawei`s founder. The charge was for selling banned equipment to Iran. Finally, in what seems to be an answer to the Meng detention, China has arrested a Canadian national in the past 24 hours. This Canadian was a former diplomat.
The plot thickens in all China engagements.