TAIPEI (TVBS News) — Abraham Newman, co-author of "Underground Empire," discussed the dilemma of U.S. economic weaponization during a lecture at National Taiwan University on Monday (April 21). He used Chinese telecom giant Huawei (華為) as a case study, highlighting how U.S. fears about surveillance through Huawei's systems in next-generation mobile networks mirror how the U.S. treated its own citizens, as exposed by Snowden in 2013.
Without domestic companies providing telecommunications technology comparable to Huawei, the U.S. government implemented alternative control mechanisms. Newman explained that America relies on economic and international trading systems, particularly the "Foreign Direct Product Rule," which targets semiconductor exports. This rule restricts companies using U.S. intellectual property, including TSMC, from selling products to Huawei (華為).
Newman noted that China continues developing its own chips for 5G systems as U.S. pressure intensifies. The Biden administration has successfully leveraged its influence over tech giants with American connections, which has effectively slowed China's dominance in artificial intelligence. In the 5G sector, Huawei (華為) has sought alternative markets outside the U.S. for its products. However, many countries remain skeptical, fearing Huawei could serve as a channel for the Chinese government to access sensitive data.
Newman observed that Huawei (華為) faces limited effectiveness due to credibility concerns, despite presenting alternative solutions. The combination of economic coercion and technology product control has demonstrated America's significant impact on China, creating both increasing challenges and opportunities for the Asian superpower.
