US Ban on Chinese Tech Firms: US telecom concerns zone in on small part of tech-hub city
Updated 19:40, 26-May-2019
[]
03:27
The trade war between the world's two largest economies has often been seen as a tug of war battle between high-level politicians in Washington and Beijing. But much of the Trump administration's focus has to do with Chinese tech giants, including ZTE, Huawei and now even DJI. They are all situated in the city of Shenzhen. CGTN's Omar Khan walks us through an area of Shenzhen that's receiving all the attention.
By now, the entire world knows of the southern Chinese city of Shenzhen.  Its claim to fame transforming itself from a fishing village, into a global, innovative tech-hub. But lately, the spotlight is on an area of no more than 50 square kilometers. Stemming from the trade war, Washington has tried to punish Chinese tech firms, on so-called allegations of a "telecom threat".
OMAR KHAN SHENZHEN "And it all started last year, with telecom-equipment manufacturer ZTE, based here in Nanshan District. The US said the company had violated trade sanctions. ZTE was then fined over a billion US dollars and was hit with an export ban. But once settled, the ban was lifted, pushing many to believe that the US orchestrated the move to gain leverage in trade talks."
Just 20 kilometers north, in Longgang District, we arrive at Huawei's headquarters, the latest target in Washington's persistence that Chinese tech companies are up to no good.
OMAR KHAN SHENZHEN "Just a few days ago President Trump signed yet another executive order, this time barring US companies from doing business with Huawei, though no mention of the company was made. Yet despite the move, the company remains steadfast in its operations."
REN ZHENGFEI CEO & FOUNDER, HUAWEI "Although this time the US government has added Huawei to this entity list, there will be little impact or influence to Huawei. But the US is a country based on the rule of law, so it must follow its own laws. Therefore, this list must respect and follow entity laws."
But what about the people of Shenzhen? Are they as resilient as Huawei's CEO?
SHENZHEN LOCAL "Our country is able to be self-sufficient with supply and design, we can develop our own products in nearly every field. Although we're in an era of globalization, we do feel the impacts, but they are minor since we can rely on ourselves. The US can do whatever they want, we're not afraid of them."
SHENZHEN LOCAL "I've kept track of the news and today I read that ARM says it will suspend its cooperation with Huawei. But back in China, myself and colleagues and even the entire nation are showing encouragement and support to Huawei. I think Mr. Ren is truly a tough man."
OMAR KHAN SHENZHEN "Back in Nanshan, I'm outside the world's largest commercial drone producer, DJI. And based on recent reports, the US Department of Homeland Security has voiced concern over drones produced in China, again without explicitly naming the company. Whether any of this has substance remains unclear. But one thing that's certain is the degree of irony in this entire situation. Shenzhen has become what it is today because of well-thought-out policy, and is a model that China has adopted. With the Trump administration championing innovation and business development, it's perhaps quite the paradox to go after a city and companies that are looking to do just that. Omar Khan, CGTN, Shenzhen."