The 5G industry could be worth up to $1.2 trillion by the year 2026. 

Therefore, the decision about which 5G service providers are permitted to roll out the technology is massive.

The governments of developed countries are faced with the same decisions. How to balance security concerns with innovation and leadership in 5G?

This explains why the Chinese company Huawei has been flagged as a potential security threat by the US. The Trump administration appeared to have decided to block Huawei from US soil.

However, yet again, Trump’s tweets have raised further questions. Let’s discover more about whether China 5G is going to be allowed in the US. 

What Is 5G?

5G stands for “the fifth generation”. It is the latest mobile internet technology which is expected to revolutionize communication and media.

Download speeds could be reportedly up to twenty times faster than current 4G networks. 

We can also expect to enjoy wider coverage. It could be the end of no-zones in which rural communities struggle for cellular connection.

The connection is expected to be even more resilient and stable, which makes it more reliable for commercial and personal use. 

5G is good news for everyone. from app developers to the consumer. 

What Trump Tweeted

President Trump’s tweet on the 21 February 2019 surprised many commentators.

He declared his support for the stepping up of efforts to roll out 5G technology across the US.

The president even mentioned 6G, which doesn’t actually exist yet. However, many tech experts have claimed that research for 6G is already underway. 

He also voiced concerns that the US could be falling behind. He didn’t mention China or Huawei explicitly. 

And yet, he also noted that he wanted to the US to “win through competition”. He did not simply want to see the “blocking out currently more advanced technologies.”

He also announced his desire for the US to “be the leader in everything we do,” including 5G.

So, there’s a lot to unpack here.

Are US Companies Lagging Behind?

Frankly, the answer is no. 

Many experts actually believe that the US is already leading the way in 5G. Over the next few months, US companies are expected to launch 5G services. 

The US government needs to prepare the FCC (Federal Communications Commission) for the speed of developments as 5G spread across the country.

China is expected to launch 5G in late 2019. However, the expansion of the 5G infrastructure is probably going to be quicker because the need to consult the local governments is marginal.

One potential barrier to the expansion of 5G in the US is the coordination with local governments, which have raised concerns about infrastructure.

However, there is good news!

The announcement that the FCC introduced legal restrictions on the amount local governments could charge 5G service providers for the permit.

Does Trump Want to Allow Competition?

At the moment, the FTC (Federal Trade Commission) appears to want to block the US company, Qualcomm, one of the biggest players in 5G. It is argued by FTC that Qualcomm has a monopoly.

However, other people have pointed out the presence of other tech giants, notably Samsung, Intel, MediaTek, and also, Huawei.

There are now raised questions about whether Trump is going to change course. Is he going to allow the Qualcomm to steam ahead with 5G? 

On the other hand, there has even been some talk about a nationalized 5G network, which would be a surprise move from a Republican president. 

It appears that the US government is saying one thing and doing something else.

Who Is the US “Blocking Out?”

Trump mentions in his tweet that the US is “blocking out currently more advanced technologies.” 

It appears he is referring to Huawai, the Chinese company, and leader in cellular infrastructure in the world. 

Why? Because there are concerns in the US government that Huawei could spy on the US and its allies and report back to Beijing.

It is worth noting how this has developed in the smartphone market.

The absence of Huawei has resulted in the emergence of a so-called “duopoly.” Apple and Samsung have dominated the market for over a decade.

Therefore, tech companies, such as Nokia and Ericsson, have shown less urgency in the rollout of 5G infrastructure. This is because they have an increasingly smaller share of the market. 

Why Does China 5G Matter?

For many people, it can appear overblown.

Besides the security issues, which Huawei has denied are relevant, what’s the problem?

We could allow China 5G from Huawei into the US to provide healthy competition. This would encourage US companies to drive forward with 5G networks. 

The problem is that Huawei’s product is significantly cheaper.

This can be explained partly by the Chinese government loans to the company. Others have claimed Huawei promotes loss-leader tactics to get ahead. 

Nevertheless, this has made Huawei extremely attractive for many developing countries, such as India. 

The claims of spying are just that: claims. However, the affordable 5G network Huawei is selling is very real. 

Huawei has already announced that they are suing the US government. It’s certain that this is not the end of the story. 

Learn More About China vs US Economy

The US government appeared to be clearly against allowing China 5G into the country. However, Trump’s tweets have called this into question.

Whether this is good news or bad news depends on your point of view.

Do we want to be a leader in 5G networks? Of course! But, are the concerns about security real? Probably!

If you want to keep up to date with the latest struggles between China and the US over the technology of the future, check out our blog.