Huawei and 5G. The Strategic Goals behind Huawei's 5G Standard Development

Studienarbeit aus dem Jahr 2020 im Fachbereich Orientalistik / Sinologie - Chinesisch / China, Note: 1,0, Bayerische Julius-Maximilians-Universität Würzburg (China Business and Economics), Sprache: Deutsch, Abstract: In the past several years, the Chinese company Huawei has become one of the most important developers of new network architecture and its corresponding standard, namely the fifth-generation cellular network (5G) standard. However, despite the economic importance of an innovative network for the overall economy, companies directly involved in developing network standards and building up network infrastructure are reported to not making a significant or only short-term profit. Hence, the question remains why Huawei engages so vigorously in network development. The overriding opinion on Huawei's intentions is focused on geopolitical considerations. The partly state-owned company might intentionally integrate vulnerabilities in its 5G architecture to use it for espionage. However, there is to date no clear evidence of severe technological vulnerabilities in Huawei equipment.The following paper does not aim to defend Chinese companies or Chinese policy. Neither does it primarily examine whether fears over espionage are perceived or real. Reasons for concern will be addressed since the ongoing debate around Huawei and 5G is rapidly changing the business environment. However, the paper will mainly try to evaluate how Huawei is fostering its position as an indispensable player in network standard development. What is so special about Huawei's 5G standard that other producers cannot provide? How will Huawei outweigh the risks associated with network development? Moreover, how is Huawei going to add value and monetize the "5G highway"?