Why a ZTE-Huawei lawsuit could be a good thing for Chinese tech innovation
A court case would act as a reminder of the importance of protection of intellectual property
Many Chinese technology companies have a mixed reputation on the world stage, frequently being accused by foreign competitors of copying technological solutions and product designs. However, up to now it has been rare to hear mainland tech firms level these types of accusations at each other.
The war of words between China's two most successful technology firms - Huawei and ZTE - comes as a surprise to many of their peers. ZTE is threatening to sue Huawei for violating two camera technology patents used in ZTE's smartphones, an accusation Huawei has denied.
Traditionally, Chinese tech firms have been united in the face of foreign accusations and have joined forces to win bids for big international projects.
Both Huawei and ZTE have strong ties with the Chinese government, especially Huawei with the military. From a political perspective, firms like Huawei and ZTE fighting with each other is the last thing that Beijing wants to see.
Some industry watchers doubt ZTE and Huawei will meet in court as conventional wisdom suggests the government will intervene to help settle the case quickly. However, a lawsuit could be a good thing for China.
On the one hand, Beijing is keen to promote its home-grown technology globally. On the other hand, competition among domestic players is on the rise, fuelled in part by a desire for recognition and to impress the country's leaders.