AEI's Barfield on the Huawei conundrum
Should a Chinese telecom giant be allowed to invest in the US?

As US-China trade talks get underway while US concern for cyber-security grows, in this first AEI Economic Studies analysis, "Telecoms and the Huawei conundrum: Chinese foreign direct investment in the United States," AEI scholar Claude Barfield explores the case of Chinese telecom equipment maker, Huawei and its commitment to long-term investment in the US. Barfield explains that:

  • Chinese telecom-equipment maker Huawei has become a global corporate giant, yet security concerns from US officials have kept it from gaining a foothold in America, intensifying US-China tensions.
  • In a time of great economic need, US desire for foreign direct investment from China is clashing with fears over cyber attacks from organizations suspected to be under Beijing’s influence.
  • Common ground can only occur if (1) Washington’s security-vetting process for foreign firms becomes more forthright, and (2) Huawei becomes a publicly listed company and agrees to be bound by OECD trade rules.


Claude Barfield
is an AEI resident scholar and a former consultant to the office of the US Trade Representative. He can be reached at cbarfield@aei.org (202.862.5879) or through his assistant steffanie.hawkins@aei.org (202.828.5212).

AEI's in-house ReadyCam TV studio may be booked by calling VideoLink at 617.340.4300. To reserve AEI's ISDN facilities for radio interviews, please e-mail margaret.mccarthy@aei.org or call 202.862.5823.

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About the Author

 

Claude
Barfield
  • Claude Barfield, a former consultant to the office of the U.S. Trade Representative, researches international trade policy (including trade policy in China and East Asia), the World Trade Organization (WTO), intellectual property, and science and technology policy. His many books and publications include Swap: How Trade Works with Philip Levy, a concise introduction to the principles of world economics, and Telecoms and the Huawei conundrum: Chinese foreign direct investment in the United States, an AEI Economic Studies analysis that explores the case of Chinese telecom equipment maker Huawei and its commitment to long-term investment in the US.
  • Phone: 2028625879
    Email: cbarfield@aei.org
  • Assistant Info

    Name: Hao Fu
    Phone: 202-862-5214
    Email: hao.fu@aei.org

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