Europe feels the squeeze over Huawei

Huawei CEO Ren Zhengfei. Photo: Fabrice Coffrini/AFP via Getty Images

European countries are caught in the middle of dueling pressure campaigns from the U.S. and China over whether to let equipment made by Chinese manufacturer Huawei into their 5G networks.

Why it matters: It's a "damned if you do, damned if you don't" choice that could leave Europe alienating a major trading partner either way.

Driving the news:

  • Germany is equivocating, with China threatening to close off a key market for German auto exports if the country blocks out Huawei, while the U.S. is exerting pressure of its own. A German decision is expected soon, but for now, Germany and others in Europe are offering highly ambiguous statements.
  • Rep. Jim Banks (R-Ind.) on Tuesday introduced a bill that would prevent U.S. intelligence-sharing with any country that uses Huawei gear to help build its 5G network.
  • Huawei CEO Ren Zhengfei spoke in Davos on Tuesday, aiming to downplay the threat his company poses and, at the same time, insist that the company is fully prepared to withstand any further U.S. "attacks" on its business.
  • The company is already largely prohibited from doing new business in the U.S. and faces severe limits on using U.S. components and services.

Background: Huawei is in the spotlight for a variety of reasons.

  • First, security insiders and industry experts are concerned that Huawei equipment might be compromised by the Chinese government.
  • Second, Huawei has become a flashpoint in the broader U.S.-China trade talks, as both sides seek a favorable deal.
  • Huawei executives have urged the U.S. not to conflate the two issues and to mitigate any security risks through a set of rules.

What they're saying: Even as it's been drawn into broader political battles, Huawei has made considerable technical progress, according to one tech executive.

  • Siemens CEO Joe Kaeser said at a Davos panel this week that his company had tested gear from all the 5G equipment vendors and found Huawei had a technological edge: "Whether we like it or not, they are a year or two ahead."
  • That's a bold finding. Historically, Huawei's strength has been offering telecom gear at a lower cost than comparable rivals.
  • But Ericsson CTO Erik Ekudden in an interview with Axios touted his own company as far ahead of the competition when it comes to pure 5G technology.

Yes, but: Ekudden said that, regardless of who's winning the tech race on 5G, uncertainty over the rules of the 5G road has harmed business.

  • "One thing people may not realize is that, in some cases, the geopolitics are just slowing down 5G development as a whole, unfortunately," he said.

The big picture: U.S.-China tensions and the emergence of 5G have been key topics at this week's World Economic Forum. Both issues affect nearly every country and company.

Meanwhile: A key court hearing is taking place this week in Canada, from which the U.S. is seeking to have Huawei CFO Meng Wanzhou (the daughter of CEO Zhengfei) extradited to face charges.

Go deeper ... Axios special report: The next tech wave rides on 5G

Additional Stories

Trump prepares to announce Amy Coney Barrett as Supreme Court replacement

Judge Amy Coney Barrett. Photo: Matt Cashore/Notre Dame University via Reuters

President Trump is preparing to nominate federal appeals court Judge Amy Coney Barrett of Indiana, a favorite of both the social conservative base and Republican elected officials, to succeed Justice Ruth Bader Ginsburg, Republican sources tell Axios.

Why it matters: Barrett would push the already conservative court further and harder to the right, for decades to come, on the most important issues in American politics — from abortion to the limits of presidential power. If confirmed, she would give conservatives a 6-3 majority on the high court.

Trump risk rises for companies

Illustration: Aïda Amer/Axios

Donald Trump fancies himself a businessman — and has given himself a central role in determining the conduct and even the existence of major companies both domestic and foreign.

Why it matters: America has historically been a great place to operate a company under the rule of law, and not be beholden to political whim. Those days seem to be over — at least for companies in the communications industry.

China's split personality on climate

Illustration: Sarah Grillo/Axios

A new insta-analysis of China's vow to achieve "carbon neutrality" before 2060 helps to underscore why Tuesday's announcement sent shockwaves through the climate and energy world.

Why it matters: Per the Climate Action Tracker, a research group, following through would lower projected global warming 0.2 to 0.3°C. That's a lot!

California war over gas-free cars

Illustration: Eniola Odetunde/Axios

The fate of California's aggressive moves to wring carbon emissions out of transportation could depend heavily on the election and the shape of the Supreme Court.

Why it matters: California is the country's largest auto market and transportation is the country's largest source of CO2.

Supreme Court Justice Ruth Bader Ginsburg dies at 87

Ruth Bader Ginsburg. Photo: Tom Brenner/Getty Images

Justice Ruth Bader Ginsburg has died of metastatic pancreatic cancer at age 87, the Supreme Court announced Friday evening.

The big picture: Ginsburg had suffered from serious health issues over the past few years. As an attorney and then as a justice Ginsburg cemented a legacy as one of the foremost champions of women's rights, raising gender equality to a constitutional issue. Her death sets up a fight over filling a Supreme Court seat with less than 50 days until the election.

U.S. hits highest daily COVID-19 case count since pandemic began

COVID Tracking Project

The U.S. confirmed at least 83,010 coronavirus cases on Friday, the country's highest daily total since the pandemic started, according to data from the COVID Tracking Project.

By the numbers: Friday's total surpassed the U.S.'s previous record set on July 17 when 76,842 cases were recorded. 

Coronavirus dashboard

Illustration: Aïda Amer/Axios
  1. Politics: Fauci: Trump hasn't been to a COVID task force meeting in months.
  2. Sports: The youth sports exodus continues — Big Ten football is back.
  3. Health: AstraZeneca to resume vaccine trial in U.S.How to help save 130,000 lives.
  4. Retail: Santa won't greet kids at Macy's this year.
  5. World: Spain and France exceed 1 million cases.

Fauci: Trump hasn't been to a COVID task force meeting in months

Photo: Drew Angerer/Getty Images

President Trump has not attended a White House coronavirus task force meeting in “several months,” NIAID director Anthony Fauci told MSNBC on Friday.

Why it matters: At the beginning of the pandemic, the task force, led by Vice President Mike Pence, met every day, but in the "last several weeks," members have held virtual meetings once a week, Fauci said, even as the number of new cases continues to surge in the country.

Read more at Axios
© Copyright Axios 2020