Is China Gaining Control of the Global Telecom Industry?

A report by the United States-China Economic and Security Review Commission claims that China is making a play to control the global telecom industry. The Commission, which was established by congress, says that Chinese state-owned telecom companies are producing much of the high-tech equipment that is being integrated into American global “computing, communications, wireless and next generation networks….Entire equipment supply chains have shifted to China.” Trouble is, “the U.S. government has barely acknowledged the ramifications of the shift of the telecommunications industry to China and growing control of Chinese comapnies over domestic and international networks.”

Why is this so troubling? Well, mainly because these Chinese telecom companies are state-woned and are given a mandate by the Chinese go ernment to expand overseas “to include support for [the] People’s Republic of China state policies and political goals,” says the report. And the Chinese government has always believed that telecom is an essential component of Chinese defense/military strategy.