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Here’s how Huawei can reverse its fortunes: offer its 5G technology to the world for free
- The US and China find themselves backed into a corner in the trade war, but one bold move by Huawei could turn the chess-like impasse into a winning move for the Chinese side
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In chess, a zugzwang is a move where a player is compelled to take action — but in doing so, his position becomes considerably weaker. This sounds like the trade war position that the United States and China find themselves in.
How the US misjudged China’s commitment to stability as weaknessOne side makes a move, retaliations occur, unintended consequences arise, and actions backfire in unexpected ways. There are no immediate winners. Finally, both parties agree to a compromise that encourages the cheering audiences on both sides. All sides declare victory.
There is a frequent argument that the Chinese and US sides are so far apart because they come from distinctly different cultures. There is an element of truth in this. A centrally controlled economy, where power goes up to one man, whose state policies support Chinese industry above all else, is not easy to trade with.
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On the other side, the US is a freewheeling economy, where the biggest, brightest and best individuals compete and succeed. Significant emphasis is placed on political checks and balances, which is quite a good thing where the unpredictable President Donald Trump is concerned.
In light of these differences, many ask: how can these two sides possibly understand each other? Yet, they obviously can and do. Today’s politicians are neither stupid nor uninformed. There are many advisers on both sides who deeply understand both cultures; seek out the news and read the tea leaves. The hanging question is whether negotiators on both sides actually want to understand each other.
The nasty part of the trade war kicked off with the arrest in Canada of Huawei’s chief financial officer, Meng Wanzhou, on US fraud charges. Huawei’s mistake was to make too much of a fuss about it. (Yes, I understand she is the founder’s daughter).
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