Some experts argue that the race to 5G could be the source from which the recent Sino-American trade dispute stems
Summary
On June 7, news of Huawei’s 5G phone models hit the internet, bringing China one step closer to winning the race to implementing a 5G network. United States and China are among a number of countries seeking to build and develop a 5G network, the next generation of mobile internet expected to employ blazing fast network speeds. Said technology is described as the next chapter in how electronic infrastructure is built and operated, with the potential to be a game changer for billions of advanced technologies for consumers, smart cities, and driver less cars. A leaked US National Security Council document argued that China would win politically, economically, and militarily if the United States falls behind on network development. It would allow for faster military communications, more efficient economic systems, and greater information capacity and transfer. The goal for China is to write the rules on Chinese letterhead and potentially benefit financially from licensing out their technology all over the world. Some American sources warn that this much technological influence would potentially give Beijing a backdoor to Western networks. The China 5G deployment is expected to begin in early 2019 with enough 5G bases expected to cover Germany by December 2019. Some experts argue that the race to 5G could be the source from which the recent Sino-American trade dispute stems. As part of that dispute, China telecom giants ZTE and Huawei have faced major obstacles in the American market. So, is China leaving the United States in its dust? Not according to the numbers. Chinese patents accounted for just 10% of the global intellectual property for 5G in 2017. In comparison, American telecommunication manufacturer Qualcomm alone owns 15% of current 5G patents.
FAO Global Assessment
With 5G appearing to be the inevitable future for tech, a flurry of technological advancements is more than likely on the horizon. Companies that manufacture electronics or provide services reliant on mobile networks will see a mix of big winners and big losers as the private sector competes to lead the industry once 5G becomes available. Investors who are contemplating putting their money into 5G must conduct thorough research of a said firm’s quality and quantity of patents held. China may be the first to bring 5G to market, but it may not be able to expand abroad as rapidly as it's competitors. Especially when you consider the amount of western firm's patents.
Related Links
- Wired – Does t matter if China beats the US to build a 5G network?
- ZD Net – MWC 2018: Huawei unveils first 5G customer premises equipment
- The Conversation – Explainer: why Chinese telecoms participating in Australia’s 5G network could be a problem
- CNBC – A major factor behind the US-China trade war is winning at a $12 trillion technology – 5G
- Politico – Telcogeopolitics: West vs. China in 5G race
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