China Gaining Control of Global Telecom Industry
2011-01-30 (China Military News cited from sldinfo.com and written by Richard McCormack) --China's steady rise as a telecommunications manufacturing and research powerhouse has "profound" national security and economic ramifications for the United States, according to the United States-China Economic and Security Review Commission.
High-tech equipment produced by Chinese state-owned telecommunications companies is quickly becoming integrated into American and global computing, communications, wireless and next generation networks. U.S. and other foreign telecommunications companies have signed hundreds of joint venture agreements with Chinese firms, providing them with entry into American markets.
Entire equipment supply chains have shifted to China, and include research and development, design, manufacturing and global deployment of technology and systems. The U.S. government has barely acknowledged the ramifications of the shift of the telecommunications industry to China and growing control of Chinese companies over domestic and international networks.
If the United States does not start monitoring the rapid changes in telecommunications technologies and ownership, it could lead to "irrevocable harm" to American national security and economic interests, says the USCC study entitled "The National Security Implications of Investments and Products From the People's Republic of China in the Telecommunications Sector."
U.S. companies continue to provide Chinese state-owned firms with access to technology, advanced research and development, manufacturing know-how, management techniques and markets. "China's technology industry now appears to be a de facto part of the American communications industry landscape," says the study. "Many aspects of the future global telecom and technology markets are now being shaped by Chinese business and government interests. The momentum they are gaining and the way they are applying their advantages are transforming global markets, propelling Chinese telecom and technology ventures toward the leading edge of technology development, manufacturing and standards setting. If current trends continue, China. . . will effectively become the principal market driver in many sectors, including telecom, on the basis of consumption, production and innovation."
Many of these Chinese telecommunications companies are state-owned enterprises given the mandate by the Chinese government to expand overseas "to include support for [the] People's Republic of China state policies and political goals," according to the report. "Concern over growing Chinese influence in this arena is not unfounded, but should be balanced by a realistic assessment of communications security vulnerabilities as well as by an appreciation of the symbiosis that has developed between the Chinese and western telecommunications industries."
High-tech equipment produced by Chinese state-owned telecommunications companies is quickly becoming integrated into American and global computing, communications, wireless and next generation networks. U.S. and other foreign telecommunications companies have signed hundreds of joint venture agreements with Chinese firms, providing them with entry into American markets.
Entire equipment supply chains have shifted to China, and include research and development, design, manufacturing and global deployment of technology and systems. The U.S. government has barely acknowledged the ramifications of the shift of the telecommunications industry to China and growing control of Chinese companies over domestic and international networks.
If the United States does not start monitoring the rapid changes in telecommunications technologies and ownership, it could lead to "irrevocable harm" to American national security and economic interests, says the USCC study entitled "The National Security Implications of Investments and Products From the People's Republic of China in the Telecommunications Sector."
U.S. companies continue to provide Chinese state-owned firms with access to technology, advanced research and development, manufacturing know-how, management techniques and markets. "China's technology industry now appears to be a de facto part of the American communications industry landscape," says the study. "Many aspects of the future global telecom and technology markets are now being shaped by Chinese business and government interests. The momentum they are gaining and the way they are applying their advantages are transforming global markets, propelling Chinese telecom and technology ventures toward the leading edge of technology development, manufacturing and standards setting. If current trends continue, China. . . will effectively become the principal market driver in many sectors, including telecom, on the basis of consumption, production and innovation."
Many of these Chinese telecommunications companies are state-owned enterprises given the mandate by the Chinese government to expand overseas "to include support for [the] People's Republic of China state policies and political goals," according to the report. "Concern over growing Chinese influence in this arena is not unfounded, but should be balanced by a realistic assessment of communications security vulnerabilities as well as by an appreciation of the symbiosis that has developed between the Chinese and western telecommunications industries."
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