Philippine telco to roll out Huawei-backed 5G service

Huawei has emerged as a key bone of contention in the wider China-US trade war that has seen tit-for-tat tariffs imposed on hundreds of billions of dollars worth of goods. (File/AFP)
Updated 21 June 2019

Philippine telco to roll out Huawei-backed 5G service

  • US President Donald Trump put Huawei on a blacklist over national security concerns just over a month ago
  • Manila is a historic Washington ally, but Philippine President Rodrigo Duterte has pulled away to attract Chinese business and investment

MANILA: The Philippines’ Globe Telecom said Friday it will launch Southeast Asia’s first 5G broadband service next month using Huawei technology, despite US blacklisting of the Chinese giant over cybersecurity concerns.
The system uses wireless radios instead of fiber optic cables to deliver service to thousands of customers in a nation that suffers from a lack of fast connections.
US President Donald Trump put Huawei, the world’s number two smartphone maker, on a blacklist over national security concerns just over a month ago.
Manila is a historic Washington ally, but Philippine President Rodrigo Duterte has pulled away to attract Chinese business and investment.
Huawei has emerged as a key bone of contention in the wider China-US trade war that has seen tit-for-tat tariffs imposed on hundreds of billions of dollars worth of goods.
Last week its founder, Ren Zhengfei, announced the company would slash production over the next two years as it grapples with a US push to isolate the company internationally.
But that has not derailed the effort in the Philippines, where Globe announced last year that Huawei Technologies and other vendors were preparing fifth-generation fixed wireless broadband.
Globe president and chief executive Ernest Cu said in a statement: “We made a crucial step in fulfilling our goal of connecting more Filipino homes, and our vision of bringing first-world Internet to the Philippines.”
US Defense Secretary Mike Pompeo earlier warned the Philippines and other nations during a visit to Manila in March against using technology from Huawei.
US officials suspect Beijing could use Huawei’s products to spy on foreign governments. The company denies the allegations.
Apart from Globe, Huawei is also contracted to supply video surveillance gear to a $400 million Philippine police project to deter crime in several cities.
A Philippine police spokesman told reporters last month that they investigated espionage allegations against the Chinese firm, but “have not uncovered any evidence to confirm that Huawei is actually spying.”


US trade offensive takes out WTO as global arbiter

Updated 10 December 2019

US trade offensive takes out WTO as global arbiter

  • Two years after starting to block appointments, the US will finally paralyze the WTO’s Appellate Body
  • Two of three members of Appellate Body exit and leave it unable to issue rulings

BRUSSELS: US disruption of the global economic order reaches a major milestone on Tuesday as the World Trade Organization (WTO) loses its ability to intervene in trade wars, threatening the future of the Geneva-based body.
Two years after starting to block appointments, the United States will finally paralyze the WTO’s Appellate Body, which acts as the supreme court for international trade, as two of three members exit and leave it unable to issue rulings.
Major trade disputes, including the US conflict with China and metal tariffs imposed by US President Donald Trump, will not be resolved by the global trade arbiter.
Stephen Vaughn, who served as general counsel to the US Trade Representative during Trump’s first two years, said many disputes would be settled in future by negotiations.
Critics say this means a return to a post-war period of inconsistent settlements, problems the WTO’s creation in 1995 was designed to fix.
The EU ambassador to the WTO told counterparts in Geneva on Monday the Appellate Body’s paralysis risked creating a system of economic relations based on power rather than rules.
The crippling of dispute settlement comes as the WTO also struggles in its other major role of opening markets.
The WTO club of 164 has not produced any international accord since abandoning “Doha Round” negotiations in 2015.
Trade-restrictive measures among the G20 group of largest economies are at historic highs, compounded by Trump’s “America First” agenda and the trade war with China.
Phil Hogan, the European Union’s new trade commissioner, said on Friday the WTO was no longer fit for purpose and in dire need of reforms going beyond just fixing the appeals mechanism.
For developed countries, in particular, the WTO’s rules must change to take account of state-controlled enterprises.
In 2017, Japan brought together the United States and the European Union in a joint bid to set new global rules on state subsidies and forced technology transfers.
The US is also pushing to limit the ability of WTO members to grant themselves developing status, which for example gives them longer to implement WTO agreements.
Such “developing countries” include Singapore and Israel, but China is the clear focus.
US Commerce Secretary Wilbur Ross told Reuters last week the United States wanted to end concessions given to then struggling economies that were no longer appropriate.
“We’ve been spoiling countries for a very, very long time, so naturally they’re pushing back as we try to change things,” he said.
The trouble with WTO reform is that changes require consensus to pass. That includes Chinese backing.
Beijing has published its own reform proposals with a string of grievances against US actions. Reform should resolve crucial issues threatening the WTO’s existence, while preserving the interests of developing countries.
Many observers believe the WTO faces a pivotal moment in mid-2020 when its trade ministers gather in a drive to push through a multinational deal — on cutting fishing subsidies.
“It’s not the WTO that will save the fish. It’s the fish that are going to save the WTO,” said one ambassador.