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MWC Barcelona: How China and Huawei dominating global connectivity despite US sanctions

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MWC Barcelona: How China and Huawei dominating global connectivity despite US sanctions​

Janelle Dumalaon Barcelona

02/27/23 2:11 AM ET

This year’s Mobile World Congress has moved even further away from being Europe's smart-device launchpad to global connectivity talk shop. And there is much to talk and fight about, DW's Janelle Dumalaon reports.

In Hall 1 at the Mobile World Congress (MWC) in Barcelona, there's a recurring phenomenon, where circular crowds of suited spectators form spontaneously at various points in the day, in random spots along the corridors formed by brightly lit stands showcasing networking equipment or introducing mobility startups. Following the gaze of the assembled onlookers directs one to a pair of shiny robot dogs chasing each other, rolling over, and begging.

In that moment it's hard not to be moved to take stock of humanity's indomitable drive towards ever more ambitious technological pursuits. It's also hard not to wish the dogs made more noise — while cute, they are unsettlingly silent.

King Felipe VI wears virtual glasses at a stand at the Mobile World Congress

A sign of post-COVID normality — Spanish King Felipe VI is trying out the latest VR technologyImage: David Zorrakino/Europa Press/abaca/picture alliance

'Velocity — Unleashing Tomorrow Today'​

The world's largest mobile-tech fair carries with it the theme of "Velocity — Unleashing Tomorrow Today." It is very much meant to evoke imagery of the world's businesses and consumers barreling into a digital-everything future, borne on superfast 5G connections or robotic quadrupeds.

But the robodogs from manufacturer Unitree are among the more tangible things unleashed at the MWC. There have been fewer global product launches in Barcelona compared to the last iterations of the fair, in some cases "global launch" here meaning launched for the first time outside of China.

A robodog at the Mobile World Congress in Barcelona

In the spotlight: A robodog at the Mobile World Congress in BarcelonaImage: Marc Asensio/NurPhoto/picture alliance

"Product launches vary; on the smartphone side we are seeing a lot of Chinese vendors globalize phones that were already released in China, which is increasing consumer options, especially for foldables," Avi Greengart, an analyst at Techsponential, told DW.

Among them, Xiaomi's flagship phone, the Xiaomi 13 and Xiaomi 13 Pro. In this long-awaited period of post-COVID restrictions, Xiaomi is looking to go head-to-head with top-shelf producers like Apple and Samsung.

People are seen walking among booths during the first day of Mobile World Congress 2023

Chinese manufacturers seek to once again push beyond their domestic market, as 150 out of the 2,000 exhibitors are ChineseImage: Davide Bonaldo/Sopa/Zuma/picture alliance

Battleground markets in US-China tech rivalry​

But the real battle is the one that is not overtly present at the event. To say the US-China tech rivalry has hung over the MWC 2023 would be a mild exaggeration. The outsized presence of Chinese firms at a mobile tech fair in the heart of Europe is in itself a message to Americans about their preparedness to keep seeking markets around the world even in the face of competition and security-related tension with Washington.

The last years have seen Chinese tech giant Huawei subject to ever tightening restrictions from Washington that cut it off from critical components like semiconductors and chip-making equipment. A few weeks ago, the US government stopped providing licenses to US companies allowing them to export to Huawei.

At the MWC, Huawei took pains to show it still has a very large global footprint and strong ties with international clients. A statement it released to highlight its participation at the event in Barcelona read:

"Third-party test results show that 5G networks delivered by Huawei for customers in 13 countries, including Switzerland, Germany, Finland, the Netherlands, South Korea, and Saudi Arabia, all provide an optimal experience…The company has already signed more than 3,000 contracts for industrial 5G applications, where they collaborate with operators and partners from various industries."

European dependency​

Germany alone relies on Chinese technology for close to 60% of its 5G networks — that's at least according to a study from Danish telecoms consulting company Strand Consult.

Founder John Strand was also at the MWC, and has long been vocal on what he feels is Europe's misplaced willingness to allow Chinese components in its critical infrastructure, especially given its status as a systemic rival.

"In the same way as we don't buy Chinese fighter planes in NATO, I don't think it is smart to build a digital infrastructure and be dependent on Chinese companies," Strand told DW. "You can say it has been easy to replace Russian gas with alternative gas, but it will take time to replace all the Huawei equipment you have in Germany. The reality is that Germany is more dependent on Chinese companies for vital infrastructure than it was on Russian gas."

For the moment, Huawei still looks to be like it is still ramping up its research and development, and it's still in a position to expand its global presence — although the US is only going to ratchet up the pressure.

People visiting the showrooms of Huawei at MWC in Barcelona

Huawei had the biggest display at the MWC, with nearly an entire hall to itself and nine stands in totalImage: Chris Jung/NurPhoto/picture alliance

An event about a digitally interconnected world was always going to reflect real-life divides, also of the geopolitical kind. But perhaps the real function of the Mobile World Congress — beyond its role as a launchpad for new devices — is to push these discussions even more prominently in the public sphere.

Although the 80,000 attendees of the MWC are mostly made up of device manufacturers, network equipment providers, and telecommunications sector representatives, the future of connectivity and who gets to create it affects us all.

 

Huawei dominates MWC mobile tech fair despite US sanctions

BY KELVIN CHAN, ASSOCIATED PRESS - 02/27/23 2:11 AM ET

_104683759_0a8a432d-9c5e-45d8-a1ef-e61dc3181753.jpg

FILE – The Huawei logo in a shopping mall in Beijing, July 4, 2018. A contingent of Chinese companies led by technology giant Huawei is turning out in force to the world’s biggest wireless trade fair, aiming to show their muscle in the face of Huawei’s blacklisting by Western nations concerned about cybersecurity and escalating tensions with the U.S. over TikTok, spy balloons and computer chips. (AP Photo/Mark Schiefelbein, File)

BARCELONA, Spain (AP) — A contingent of Chinese companies led by technology giant Huawei is turning the world’s biggest wireless trade fair into an opportunity to show their muscle in the face of Huawei’s blacklisting by Western nations concerned about cybersecurity and escalating tensions with the U.S. over TikTok, spy balloons and computer chips.

After three years of pandemic disruption, they are among tens of thousands in Barcelona for MWC, also known as Mobile World Congress, an annual tech industry expo starting Monday where mobile phone makers show off new devices and telecom industry executives peruse the latest networking gear and software.

Out of 2,000 exhibitors and sponsors, 150 are Chinese companies and Huawei Technologies Ltd. has the biggest presence. The smartphone and network equipment maker expanded its footprint by 50% from last year and is taking up almost an entire vast exhibition hall at Barcelona’s Fira convention center, organizers said.

That is striking considering that Huawei has been at the center of a geopolitical battle over global technology supremacy that’s left parts of its business crippled by Western sanctions.

The U.S. three years ago successfully pushed European allies like Britain and Sweden to ban or restrict Huawei equipment in their phone networks over fears Beijing could use it for cybersnooping or sabotaging critical communications infrastructure — allegations Huawei has denied repeatedly. Japan, Australia, New Zealand and Canada have taken similar action.

Brian Chamberlin, executive adviser at Huawei’s wireless carrier group, said “the sanctions have had a big impact” but the company is “not going to try to break any of those rules.”

“But at the same time, that’s not going to slow us down from delivering innovation, innovative solutions,” he said at the expo. “We will continue to do business with companies and countries that want our support.”

Huawei’s supersized presence at the show is a sign of defiance, said John Strand, a Danish telecom industry consultant.

Huawei wants to “give Biden the finger,” Strand said of the U.S. president. The company’s message, he said, is: “Despite the American sanctions, we are alive and kicking and doing so well.”

U.S.-China tech tensions have only grown.

A suspected Chinese spy balloon downed by a U.S. fighter jet sparked acrimony between Beijing and Washington in recent weeks.

U.S. authorities have banned TikTok from devices issued to government employees over fears the popular Chinese-owned video sharing app is a data privacy risk or could be used to push pro-China narratives.

The U.S. also is seeking to restrict China’s access to equipment to make advanced semiconductors, signing up key allies Japan and the Netherlands.

That followed the MWC expo four years ago becoming a battleground between the U.S. and China over Huawei and the security of next generation wireless networks. In a keynote speech, a top Huawei executive trolled the U.S. over its push to get allies to shun the company’s gear.

Huawei hasn’t gone away, and the dispute continues to simmer. Washington widened sanctions last month with new curbs on exports to Huawei of less advanced tech components.

Still, the company has maintained its status as the world’s No. 1 maker of network gear thanks to sales in China and other markets where Washington hasn’t been so successful at persuading governments to boycott the company.

Strand, who has been attending MWC for 26 years, said Huawei wants to show the world it’s pivoting away from mainly making networking gear — the hidden plumbing such as base stations and antennas connecting the world’s mobile devices — and becoming an all-round tech supplier.

The company is reinventing itself by supplying hardware and software for cargo ports, self-driving cars, factories and other industries it hopes are less vulnerable to Washington.

“Since MWC is a global event, they (Huawei) will want to communicate on this and showcase that they are still a key player in the telecom and high-tech industry,” said Thomas Husson, a principal analyst at Forrester Research.

The company’s presence is so big simply because of “pent-up demand,” said Chamberlin of Huawei.

“We have been locked into China for the past three years due to the COVID restrictions. So this is really the first time we’ve been able to engage with our customers,” he said.

Huawei also makes smartphones but sales outside China cratered after Google was blocked from providing maps, YouTube and other services that usually come preloaded on Android devices.

“The Huawei consumer brand has collapsed in Europe,” Husson said. At MWC, “Huawei may well announce new consumer smartphones and new consumer devices, but the brand has lost momentum and these announcements are primarily for fast-growing markets outside the U.S. and Western Europe.”

At Huawei’s pavilion, staff showed visitors the latest 5G antennas alongside equipment for older generations of cellular networks that still account for much of the company’s business. Optical networking switches and new flexible fiber cable for home networking were displayed inside a VIP area, while smartphones and other consumer devices like earbuds were laid out at the entrance.

Huawei is just part of the larger Chinese delegation, whose turnout is getting a boost from China lifting all COVID-19 travel restrictions. ZTE, another Chinese tech company that had been sanctioned by the U.S., plans product launches at MWC.

Chinese mobile phone makers Honor, Oppo and Xiaomi will have a strong presence, said Ben Wood, chief analyst at CCS Insight. Honor was Huawei’s budget brand but was sold off in 2020 in hopes of reviving sales by separating it from the sanctions on its corporate parent.

“The removal of COVID restrictions in China has made it possible for these manufacturers to attend the show in force,” Wood said. “They are all keen to establish themselves as the ‘third alternative’ to Apple and Samsung in European markets and see MWC as a pivotal event to do that.”

 
I remember one decade ago, Chinese brands smartphones was a strange thing.

Now it's the common here.
 
But hadn't Huawei been long killed based on some Americans and their lackeys claimed in PDF?
 

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