The European Commission’s Directorate General recently revealed a comprehensive 700-page report examining the economic distortions imposed by the Chinese government. The report, authored by John Strand of Strand Consult Research, provides meticulous analysis with over 3500 authoritative references from various international bodies. It meticulously delves into China’s economic distortions across different fronts, shedding light on its impact on various sectors including telecommunications.
The report offers an in-depth exploration of China’s economic landscape, emphasizing that concerns about its economic practices are not baseless. The evidence-backed analysis, compiled from official Chinese government materials, unveils systematic and persistent distortions directed by the Chinese state. This fact-based report is a valuable resource for policymakers, business leaders, journalists, students, and the public, providing crucial insights into China’s economic distortions while refraining from offering specific recommendations or conclusions.
With a focus on the telecommunications sector, the report illuminates key findings, such as the extensive control exerted by the Chinese government in various economic domains, including telecommunications, energy, and transportation. It highlights the dominance of Chinese state-owned enterprises in critical strategic sectors, reflecting a deliberate government strategy.
The report further unveils China’s efforts to position its telecommunications equipment industry as critical for technological development and leadership, revealing a web of government planning that gives domestic firms an edge over foreign competitors. Notably, the report documents various forms of support provided by the Chinese government to domestic telecommunication firms, including procurement preferences, below-market lending, and technology transfer from foreign entities.
Crucially, the report emphasizes the dominant market share of major Chinese telecommunications entities such as Huawei and ZTE, shedding light on their intricate ties with government agencies and the military. It also underscores the Chinese government’s drive for technological self-reliance through initiatives like ‘Made in China 2025’, aiming to position Chinese telecommunications equipment manufacturers at the forefront of global markets.
Furthermore, the report dives into the complexities and security implications brought about by China’s regulatory barriers and extensive cybersecurity certification requirements in the telecommunications industry, presenting a stark contrast to western standards.
Market Capital Research 