Arab Today, arab today huawei row shines light on eastwest culture clash
Last Updated : GMT 04:07:37
Arab Today, arab today
Arab Today, arab today

Huawei row shines light on East-West culture clash

Arab Today, arab today

Arab Today, arab today Huawei row shines light on East-West culture clash

Beijing - AFP

US security fears over two China telecom firms have spotlighted Western suspicions Chinese companies are state-influenced, a culture clash analysts say could loom larger as the country\'s businesses look overseas. Telecommunications equipment firms Huawei Technologies and ZTE were put on the defensive this month by a US Congressional committee that labelled them potential national security threats that should be excluded from government contracts and barred from acquisitions in the United States. Huawei -- a private company founded by a People\'s Liberation Army veteran -- and ZTE -- publicly traded and less than 16 percent state invested, according to the corporation -- have denied they pose any such security risk. But countless Chinese companies remain either majority state-owned or maintain intricate government links, a fact noted even by ZTE itself. ZTE spokesman David Dai Shu said in a statement that the committee\'s finding that the company may not be free of state influence, \"would apply to any company operating in China\". Analysts said the issue could become a recurring stumbling block as more Chinese firms look for expansion opportunities abroad -- especially in sensitive sectors -- just as China is increasingly viewed as a strategic US rival. \"We\'ve never had a country with a one-party state and a very large state sector that has played such an important role in the global economy, that has been in a position to make investments around the world,\" said Patrick Chovanec, professor at Tsinghua University\'s School of Economics and Management in Beijing. Worries over Chinese companies buying into US industries considered strategic have scuttled past deals, as in 2005 when state-owned China National Offshore Oil Corp (CNOOC) tried to take over US oil major Unocal. More recently, President Barack Obama last month blocked a Chinese-led group from purchasing several wind farms near a US naval station, saying the acquisition threatened national security. \"Such decisions by the United States will affect the enthusiasm of Chinese companies to invest in the United States,\" Chinese ministry of commerce spokesman Shen Danyang said. The distrust stems from what is seen as an increasingly assertive China that is pouring money into building up its military and, US defence officials have warned, its ability to potentially use high-tech means to disrupt US communications or information systems. China already has been accused of being a major source of international computer hacking and cyberattacks, although Beijing denies involvement. Compounding the issue is the generally opaque nature of many Chinese companies, which often seem secretive in the west, where there is more pressure for corporate transparency. \"They can either operate according to the logic that works in China or they can operate according to the logic that works in the US,\" said Scott Harold, a China expert at the US-based Rand Corporation. \"But sometimes they will not be able to operate according to both logics simultaneously since they\'re incompatible.\" A research report by Fitch Ratings said US sales for Huawei and ZTE account for less than five percent of their revenues and the House committee move was unlikely to immediately affect their bottom lines. \"A more meaningful impact could arise if more countries decide to avoid the Chinese manufacturers over alleged national security concerns,\" they wrote. Just after the US Congressional report release, Canada said it had invoked a \"national security exception\" that could exclude Huawei from a role in helping build a new secure government network, as the country rebuilds networks damaged by cyber attacks in 2010. Australia earlier this year blocked Huawei from bidding for contracts on a huge national broadband network. Analysts said security is a legitimate concern when assessing foreign investment in areas such as telecoms with bearing on national security. But there is a danger that protectionist sentiments could get out of hand, harming Chinese companies that pose no threat, said John Lee, an expert on China\'s political economy and foreign policy. \"The decision of the House committee can potentially be misused by various groups in the West to justify protectionism, to justify irrational fear of foreign investment, particularly Chinese investment, so it\'s very important that that doesn\'t occur,\" said Lee, of the University of Sydney. Anti-China rhetoric is climbing in the US, especially as the presidential campaign kicks into high gear with both candidates seeking to emphasise their tough-on-China credentials. A broader impact on Chinese companies has yet to emerge, but Chovanec said excessive anti-China feelings could be counter-productive for the US economy. \"There are Chinese companies that have made investments in the United States, have contributed to jobs in the United States. It would be a shame if they were tarred by the same concerns that we ran into here (with Huawei and ZTE),\" he said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today huawei row shines light on eastwest culture clash Arab Today, arab today huawei row shines light on eastwest culture clash

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today huawei row shines light on eastwest culture clash Arab Today, arab today huawei row shines light on eastwest culture clash

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today 3,250 people killed in Raqqa battle

GMT 03:49 2017 Wednesday ,18 October

3,250 people killed in Raqqa battle
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday