US sets bad model by blocking Huawei, ZTE

Updated: 2012-10-18 17:31


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Chinese overseas investment has increased steadily with the rapid development of its economy over the past decade. Chinese companies have begun to tap the high-tech industry in recent years and their investment destinations have expanded from developing countries to the developed world.

However, some believe that developed countries are using national safety as an excuse to block Chinese investment.

"Huawei and ZTE represent something new: a former third-world country producing first-world technology. The American corporate psyche finds this difficult to handle," said John A. Quelch, dean of the China Europe International Business School in Shanghai.

The Chinese government has tried to maintain an open atmosphere for US enterprises in recent decades by providing them with preferential policies.

Chen Jinqiao said global telecommunications giants, including Ericsson, Nokia, Siemens and Cisco, have rarely been met with harsh protectionist measures in China.

Protecting itself and attacking tech industry competitors through political means indicates that the US is worried of being surpassed, analysts said.

Chinese IT analyst Fang Xingdong said Cisco may be able to obtain temporary gain by lobbying US politicians, but will lose in the long run.

Chen Jinqiao said Chinese companies will likely continue to face the same kind of obstacles that have hobbled Huawei and ZTE.

Chinese companies will need to learn the country's rules and laws, employ more local staff and find more partners if they wish to successfully exploit the US market, he added.

The improvement of the trade environment between China and the US will bring benefits to companies from both countries, Chen said.

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