Editor's note: Mark Hoskin is a doctorate researcher at the School of African and Oriental Studies in the University of London. The article reflects the author's opinions, and not necessarily the views of CGTN.

In a supposed victory for Tory backbench MPs, the British government has announced that purchases of new Huawei 5G equipment will be banned from December 31, 2020. The government then went on to state that all Huawei equipment will be removed from 5G networks by the end of 2027.

The announcement presents two problems: British citizens will have to wait longer for 5G access in some areas, and the replacement of 5G equipment in existing networks will likely increase service costs as companies seek to recoup their losses.

As the Chief Executive for the China-Britain Business Council Matthew Rous stated in a BBC News interview on July 14: "It's very disappointing... British homes and British businesses will be the poorer for it."

At a time when Britain is reeling from an economic shock that may take years to recover from, with the economy shrinking 19.1 percent in the three months to May, according to the Office of National Statistics, British people will already be worse off, making this government decision an unfortunate one for all concerned.

The decision did not include 4G and other equipment, nor does it ban sales of Huawei's handheld devices, including smartphones and tablets, yet the government states it had made this decision due to security issues. This is due to a U.S. government sanction, denying Huawei the ability to buy semiconductor chips manufactured by U.S. companies.

In 2019, the U.S. banned the export of U.S. technology to Huawei. However, licenses were issued for some exports, and non-U.S. companies that produce them, like Taiwan Semiconductor Manufacturing Company (TSMC) which uses American made tooling, continued shipping to Huawei. The new rule, announced by the U.S. Commerce Department, became effective in May, with a 120-day grace period, blocking some loopholes for chips made outside the U.S., using U.S. tooling and technologies.

This potential change in chip supply is claimed to be the reason for the British government's decision. Despite the government's targeted approach, the announcement will also negatively affect the perception of Huawei consumer-level devices generally, harming the company further.

The U.S. has partly based this export ban on Huawei due to links with the Chinese government, including tax breaks, financial incentives, and other benefits that helped the company expand. Ironically, on the same day as the Commerce Department made its announcement, TSMC announced it was opening a new chip foundry in the State of Arizona, with U.S. federal and state government's support, which will likely include tax breaks and financial incentives, as a widely-publicized deal with the Taiwanese company Foxconn did in 2019 that has yet to qualify for the proposed state subsidies in the millions of dollars. It is difficult to see the U.S. complaints made against Huawei as anything other than sour grapes.

Despite suggestions that China should consider each agreement it has made with Britain separately, it is difficult to ignore the possibility for other high technology deals, including joint nuclear power building with British and French companies, to be curtailed in the future.

The problem for China is business uncertainty in the current political climate. However, Britain had an opportunity to do something different, based upon its deals in the development and construction of nuclear power stations, it could have decided that any future Huawei 5G equipment had to be assembled in the UK. If such a company was set up as a subsidiary, with British oversight and export controls, the U.S. may have seen the opportunity to partner with such an initiative, boosting exports, controlling use of its technology, and supplying jobs for American and British workers.

With the potential for parts that don't have security concerns being exported from China, all three countries could benefit. Such equipment, built in Britain with U.S. chips, British oversight, and Huawei 5G technologies, would have resolved questions for any European countries that are also feeling U.S. pressure over Huawei.

Instead, due to a potential revolt from Tory Backbench MPs, Britain's workers and businesses lose, U.S. workers and companies lose, supply side manufacturers lose, and so does the company that gave Britain such a strong start in 5G. Britain had the opportunity to take a different path and show true leadership, which would have benefitted the British workers; instead it chose to follow a U.S.-made path that throws all existing British-China business deals into a basket, one that may not produce economic benefits for anyone involved.

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