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Opinion

US President Donald Trump’s plan for 5G network is misguided and counterproductive

The US tech sector is famous for being competitive and for its free flow of ideas and talent, free of government interference. The president’s plan for a government-owned network could undermine all that and work to America’s disadvantage. That may benefit China in the end.

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Attendees photograph a 5G logo displayed during a Qualcomm press event for CES 2018 at the Mandalay Bay Convention Center on January 8, 2018 in Las Vegas. Photo: Getty Images/AFP
SCMP Editorial

The Trump White House seems to see threats everywhere from China. The latest is 5G technology, the wonder telecommunications platform that is expected to provide not only faster connectivity and ubiquitous coverage, but support for driverless cars, transport systems, cloud computing, and uses and businesses yet to be developed or even imagined. US companies have already spent billions developing the technology and buying up broadcast airwaves spectrum to launch such networks.

Then thunder strikes. President Donald Trump’s national security team has drawn up a blueprint to build a nationwide, government-owned 5G network to counter Chinese advances in the development of the technology, including alleged spying and commercial advantages.

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The whole plan is misguided and counterproductive, especially for American companies and consumers. Thankfully, it is still at an early stage. A senior official on the White House team said it would take six to eight months before it could be presented to Trump for consideration. One can only hope wiser heads will prevail.

In his first state-of-the-union address, the US President declared loudly that “the era of economic surrender is over”.

While the critical reference was ostensibly made to multiple major trading partners of the US, China was the leading target. There are ominous signs. Huawei and ZTE, which lead the development and commercialisation of 5G-related technologies on the mainland, have recently been shut out of lucrative carrier network deals in the US because of security worries. Trump’s speech also came just days after steep tariffs were imposed on solar panels, which hit China hard.
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