June 15th issue economist The headings and subheadings were as follows:
US plot to assassinate Huawei backfires
Companies are stronger and less vulnerable
But even if the reference to Nietzsche is ill-timed, the story itself contains some important insights.
The US attacks continue. In May, for example, regulators revoked a special license that had allowed two US technology groups, Intel and Qualcomm, to sell Huawei chips for laptops. But Huawei has not only survived, it is thriving again. Its net profit in the first quarter of this year surged 564% year-on-year to 19.7 billion yuan ($2.7 billion). The company has re-entered the mobile phone business, and sales of telecommunications equipment are also growing again. And it has achieved this mainly by replacing foreign technology in its products with domestic parts and programs, making it less vulnerable to US hostility in the future. The US government’s attacks, which failed to crush Huawei, have only made it stronger.
Foreign Affairs There is also a great article on trade relations with China.
A China that is increasingly cut off from Western markets will have less to lose in a potential conflict with the West and therefore less incentive to de-escalate. As long as China remains closely tied to the United States and Europe through trade in high-value goods that are not easily substitutable, the West will be much more effective in deterring China from engaging in destabilizing behavior. China and the United States are strategic competitors, not enemies. But when it comes to U.S.-China trade relations, there is wisdom in the old adage, “keep your friends close and your enemies closer.”
One benefit of globalization is that countries have become much more interdependent. If your well-being depends on interacting with other countries around the world, you may be less inclined to take hostile action that puts your supply chain at risk. Once you are cut off from the world, as we’ve seen in places like North Korea, there’s little incentive to avoid reckless behavior.
