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The East and The West — Cooperation via Belt-Road-Initiative #OBORI



China owns the Belt Road Initiative, or the world owns it? Cooperation comes with collective vision and effort. It does not only from friends, but also from "rivals". In a Chinese saying, there is no forever friends, also no forever enemies/rivals. Aiming for the joint prosperity and just keeping working on it does matter. - writes Dr Ying Zhang.

 Deeply rooted in the ancient Eurasian Silk Road developed over a thousand years ago and lately revisited by the Chinese President Xi Jinping in 2013 in the period of China’s economic transition, the BRI, also named as New Silk Road and One-Belt-One-Road, has been seemingly widely accepted as an initiative to facilitate cross-continent trade, geo-economic integration, and global prosperity. However, with regard to this idea, since its emergence, it has been interpreted variously, mainly in two directions: aptly reflecting what China has been challenged in terms of domestically slowing-down economic growth and boldly projecting the growing influence of China onto the global landscape with an alternative international geo-economic relationship approach. This initiative has also elicited the respect and awe as well as the enthusiasm and paranoia to its proposer—China — as a visionary idea of the world— in dire need for, but also raised questions that whether this idea is an altruistic game changer for the world, or is just another plot of an egotistically motivated superpower to further its own self-interest.  

 The concern comes with a reason, similarly to the pursuit of Trans-Pacific Partnership (TPP) by the other superpower being lauded as well as criticized. Some thought of it as a beacon of world trade, giving the economies of the pacific rim of their well-deserved trading club; while others saw it as just another instrument of the USA to align its pacific rim allies in an exclusive club of economic cooperation. With the unexpected withdrawal of the USA from the TPP in the Trump’s Administration, the general attention has shifted to the other forward-looking initiative of BRI and China has ultimately been catapulted into the position as a thought leader to build a new world order.  This position will undoubtedly draw the eyes of the entire world to discuss BRI from China and of course expose China to the risk of losing its ordinary charm vis-à-vis the ordinary onlooker.

 The current wave of reaction to BRI is similar but also different, with the different profile showing both an enthusiasm to BRI from some countries, and criticism from others. The criticisms are mainly loaded by those against changes, and those “favoring” self-power and populisms rather than being oriented to collective prosperities. Over three years of BRI -framework projects happening cross the Eurasian Continent since the mid of 2013, the lines have been shifting as disappointment has to face the reality.  Typically many countries of the world started to be supportive to BRI platform as they see tangible advantages, both in short and long-run, while other continue to beat the drum against a change. There are also some being torn between believing into the benefits of a new vision and fearing its ramifications that they cannot fully grasp. Their wait-and-see-attitude is a linchpin. 

 In the same line, AIIB (Asian Infrastructure Investment Bank), the BRI’s sister-initiative, however, has been widely accepted and operated.  AIIB, commonly labelled as a “crowd-funded and crowd-owned” project, gives an insight to question if BRI can share the same label. It would make sense that BRI is not only a joint owned platform, but also the one requiring shared-commitment (including design, plan, investment, and execution).  If we shall label AIIB as a bridge to the future financial order of the new world, BRI should be another arm for the logistic and trade of new order. 

 Furthermore, to face the change of the world, with the pulling force of technology such as digitalization, DNA technology, and AI from the front, as well as the pushing force of geo-social-economic reshuffling deriving from a new model in the format of sharing economy from the back, to build a harmonious global society, each participant needs to carefully take a consideration of the facts of the past, seriously see through the phenomena of the current, and ethically plan for the future. We need to bear in mind that the future is the future for all communities, not only for a particular member or a particular club. BRI, as a cross-continent platform with the purpose of facilitating global common prosperity, can be used as an instrument to nurture the future society in the nature of equality-based social-economic environment, and can be used to cultivate the principle of conducting such a setting in the loop of “Acceptance-Trust-Support”. 

 This vision will probably take ages to achieve, but does not mean not possible. In addition to carry such a faith and resolve the concerns from many in parallel, both the East and the West need to own up to the concept of BRI, and be more responsible and mindful to sync with one another. Both sides should cooperate in finding solutions to existing crippling problems, eliminate an overall defensive and competitive mentality, and create a cooperative foundation for the future agenda. These tasks as a condition for BRI should not only be on the shoulder of governments of countries, but also on the shoulders of business, research institutes, educations, and each of individuals. By taking both sides of force from different stakeholders, a systematic road map for an inclusively equality-oriented community can be set up. But something we need to always bear in mind is that differences are the source of the disputes, however it is also the origins of the creativity as well as the motivation for us to aim for building a harmonious global community.


Belgium probes top EU think-tanker for links to China



A former UK diplomat and ex-European Commission official who runs a Brussels think tank is being investigated by Belgian security services on suspicion of passing sensitive information to China — allegations that he denies. Fraser Cameron, who directs the EU-Asia Centre, rejected as “absurd” the investigation into his alleged contacts with two Chinese journalists accredited in Brussels who — according to Belgian security officials speaking on condition of anonymity — also work for the Chinese ministry of state security and the Chinese military, as reported  by Barbara Moens in POLITICO.

The Belgian officials who spoke to POLITICO also briefed Belgian newspapers De Standaard and L’Avenir on the case. It is unclear where the investigation might lead, since the charges he might face were not specified and espionage — which was cited by the Belgian officials — is not treated as a crime under Belgian law. According to a person close to the case, the federal prosecutor’s office has opened an investigation into Cameron, though the prosecutor’s office itself declined to comment. The case was opened on the basis of the Belgian state security investigation that judged Cameron’s alleged activities could constitute a risk for European officials, though they did not specify what kind of risk he might pose.

Contacted by POLITICO for comment, Cameron said in an email that the allegations “are without foundation.” He stressed that he has “a wide range of Chinese contacts as part of my duties with the EU-Asia Centre and some of them may have a double function,” but added: “I retired 15 years ago from official employment and have zero access to any sensitive information.”

Cameron said his lawyer was not aware of any case having been opened, adding: “The allegations themselves are obviously damaging but they really are absurd if you just stop to think about them for a minute.” Cameron, who according to his entry on the EU-Asia Centre’s website has “lived and worked in Belgium for 20 years” and is “a visiting professor at several universities in Asia,” is suspected by Belgian intelligence of receiving thousands of euros for providing confidential — but not necessarily classified — political and economic information to the Chinese regarding European institutions.

In a separate email to L’Avenir, seen by POLITICO, Cameron said the EU-Asia Centre receives “a small annual grant” from the Chinese diplomatic mission to the EU, to help organize events on EU-China relations. “This is the only funding received from the Chinese,” he said.

Cameron added, in his response to L’Avenir, that the EU-Asia Centre’s recent activities, including a webinar on this week’s virtual EU-China summit, demonstrated “that we are highly critical of China!” ‘Close to Beijing’ POLITICO was told the names of the two Chinese journalists allegedly involved, but was unable to confirm their status independently.

Belgian security officials said the suspect activities had been going on for a number of years, but they would not say whether that included Cameron’s time at the European Commission, before his retirement in 2006. One official in the Commission, speaking on condition of anonymity, said Cameron was known to be “very close to Beijing”. Since espionage is not classified as a crime in Belgium, public prosecutors have long called for an update of the country’s law on espionage, which dates back to the 1930s.

That means prosecutors may have to identify other criminal offenses if they want to press charges — which happened in the case of former Belgian diplomat Oswald Gantois. Investigated for leaking information to Russian secret services throughout his career, he was convicted in 2018 of illegal association with the purpose of committing forgery. Public prosecutors have cited Belgium’s role as a diplomatic hub, hosting the EU institutions and NATO headquarters, as justification for broadening the definition of espionage in national law to facilitate prosecution.

The current federal justice minister, Koen Geens from the Flemish Christian Democratic party CD&V, is trying to push an update of the espionage law through parliament but has made little progress because of an impasse in forming a government since late 2018. “The minister and CD&V have been asking for a long time to vote on the proposal,” said a spokesperson for the minister. Earlier this year, German prosecutors revealed that they suspected another former EU official of passing information to China. German national Gerhard Sabathil, a diplomat turned lobbyist, denied the allegations and has so far not been arrested nor charged.

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Huawei ban spurs new competition for Ericsson and Nokia



The US ban on Huawei Technologies Co. was supposed to hand leadership of the lucrative market for wireless base stations to Ericsson AB and Nokia Oyj. It’s not working out that way, write Ian King, Kati Pohjanpalo, Niclas Rolander, Grace Huang, and Pavel Alpeyev.

The crackdown on China’s largest technology company has given startups such as Altiostar Networks Inc. and new entrants including Qualcomm Inc. a rare opportunity to grab a slice of the $35 billion the telecom industry spends each year on this crucial part of mobile phone networks.

“This could break up that tech vendor lock-in that’s been around for decades,” said Andre Fuetsch, chief technology officer of network services at AT&T Inc., the third largest U.S. wireless carrier. “It’s about how do you create a much more competitive, innovative ecosystem.”

Technology gets political

Position on including equipment from China’s Huawei in 5G mobile networks, as of 15 July, 2020

Source: Bloomberg

Base stations are the heart of cellular networks, powering millions of antennas that perch on cell towers and city rooftops all over the world. Until recently, these boxes were a proprietary combination of processors and software that had to be purchased all at once. Huawei, Ericsson and Nokia account for three quarters of this market, which is worth as much as $35 billion a year, according to researcher Dell’Oro Group.

Open radio access network, or O-RAN, changes this by creating an open standard for base station design and ensuring all the software and components work well together -- no matter who is supplying the ingredients.

This is a potentially radical shift. When telecom giants such as AT&T and China Mobile Ltd. want to expand their network they usually have to call their existing supplier and order more of the same because a box from Nokia won’t work with one from Ericsson. The new technology lets wireless carriers mix and match more easily.

The initiative also means that new suppliers can succeed by focusing on one or two components, or a single piece of software, rather than spending lots of time and money building a whole base station from the ground up.

O-RAN gear has been used sparingly since an industry alliance was formed to promote the technology in 2018. But when the U.S. toughened its stance against Huawei last year and encouraged other countries to crack down, interest in O-RAN adoption increased. The Chinese tech giant is a low-cost provider. Now it’s unavailable in some markets, carriers are more willing to look at alternative suppliers embracing the more flexible O-RAN approach.

“Increased geopolitical uncertainty is helping them to get an invite to the table they would not normally have had,” Dell’Oro Group analyst Stefan Pongratz said. “Multiple vendors, not just in Europe but across the world, are basically reassessing their exposure to Huawei.”

How Huawei landed at the centre of global tech tussle: QuickTake

Open standard base stations will generate sales of about $5 billion in the next five years, more than originally predicted, according to Dell’Oro.

Ericsson questions the performance and cost-efficiency of current O-RAN offerings. But the telecom companies, who decide where the money is spent, aren’t being shy about telling incumbent providers to get on board or risk being left behind.

“We’ve been candid with them: This is the architecture that the operator community is pursuing,” said Adam Koeppe, who oversees technology strategy, architecture and planning at Verizon Communications Inc., the biggest U.S. wireless carrier.

The list of companies vying to fill the gap left by Huawei is a mixture of some of the oldest names in technology and newcomers. Qualcomm, Intel Corp.Hewlett Packard EnterpriseDell Technologies Inc.Cisco Systems Inc.Fujitsu Ltd. and NEC Corp. are offering various parts of the new base station technology. Startups such as Altiostar, Airspan Networks and Mavenir Systems are trying to carve out niches, too.

O-RAN proponents point to the success of Rakuten Inc., a Japanese e-commerce provider that has used the technology to break into mobile phone services. The company began 4G wireless service in April and is upgrading to 5G now, using O-RAN suppliers including NEC, Qualcomm, Intel, Altiostar and Airspan. Rakuten said using this more open approach has cut capital expenditure by 40% and reduced operating costs 30%.

Dish Network Corp. is building a 5G wireless network in the U.S. with help from Altiostar. New projects like this are great, but the real opportunity is with operators that are shifting their existing networks to O-RAN, according to Thierry Maupilé, Altiostar’s executive vice president of strategy and product management. The Tewksbury, Massachusetts-based company has raised more than $300 million from investors such as Rakuten, Qualcomm and Cisco.

Why 5G mobile is arriving with a subplot of espionage: QuickTake

O-RAN is part of a broader push to make all kinds of computer networks more flexible and easy to control. By standardizing hardware and using more software in centralized data centers, companies can run networks more cheaply, while fixing and upgrading them more easily. 5G will need this flexibility to work well.

For AT&T, the new approach has already started to help. The company has introduced Samsung equipment based on O-RAN in areas where it had previously been limited to Ericsson gear, AT&T’s Fuetsch said.

Nokia expects to have a full range of O-RAN offerings available in 2021. Some of the final standards aren’t yet set and they need to be completed and tested which will take time, according to Sandro Tavares, global head of marketing.

“O-RAN is supported by more than 20 major operators around the world, so it is pretty clear that there is a strong push for it to happen,” he said. “This is a big move for our industry, and it is clear for the main players that we should not be cutting corners in this process.”

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#Huawei delivered a lifeline from Samsung as latest US sanctions hit



Huawei has reportedly been delivered a helping hand from smartphone rivals Samsung as they deal with more US sanctions inflicted on them, writes Dion Dassanayake.

The P40 Pro and P30 Pro makers this week (15 September) are seeing a new set of US sanctions imposed on them. Following on from Huawei being put on the US Entity trade blacklist last year, Donald Trump's administration are ramping up the pressure on Huawei even further with a new restriction that means a company which wishes to supply parts that use any kind of American tech to Huawei needs to apply for a license. The latest sanction affects a wide range of tech used in Huawei smartphones such as chips and OLED displays from Samsung and LG.

LG has already commented about this latest round of sanctions, saying it will have little impact on its operations as the firm supplies a limited amount of panels to Huawei.

Samsung is yet to comment, but the South Korean tech giant has reportedly applied for a license to supply the P40 makers with panels.

According to a post by ZDNet, Samsung Display has applied for a license from the US Department of Commerce before the latest sanctions kick in on September 15.

If the license is given the green light then it will be great news for both parties.

Samsung Display is the world's biggest OLED provider, with Huawei their third most important customer behind Apple and Samsung Electronics.

While Huawei will be hoping the license gets approved as if it doesn't it leaves them with few alternatives.

Elsewhere, ahead of the latest US sanctions coming into force Huawei has reportedly been stockpiling Kirin chipsets.

Reports coming from China claim Huawei chartered a cargo plane to Taiwan to ship Kirin and other related chips back to them by 14 September.

Huawei has already confirmed that their upcoming Mate 40 handset will be the last to feature their own Kirin chipset.

Huawei’s consumer business CEO Yu Chengdong has confirmed the restrictions being implemented on 15 September means its Kirin chipsets "cannot be manufactured" after that date.

HuaweiHuawei have been hit by a number of restrictive US sanctions 

Huawei chips are manufactured by Taiwanese firm TSMC which use equipment sourced from the States.

Recently, Huawei chairman Guo Ping spoke about the latest sanctions coming from the Trump administration.

Staying upbeat, Guo admitted the latest sanctions would "cause certain difficulties" but said "I believe we can solve them".

Guo also said "the world has been suffering for a long time" over the power Google wields on the Android ecosystem and that the globe is "looking forward to a new open system". The Huawei bigwig added: "Since Huawei helped Android to succeed, why not make our own system successful?"

Guo, whose firm in Q2 of 2020 became the largest smartphone manufacturer in the world, added that Huawei was up to the "fight" to succeed. The Huawei chairman said: "HMS must have a ‘Foolish Old Man Moving Mountain Spirit’, no matter how high the mountain is, dig an inch or less, persist and fight for a long time, we will definitely succeed".

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