The new Space-race
China and the US. For months now the two countries have been involved in an escalating trade war. The US imposed tariffs on Chinese exports, China responded with tariffs on US exports. But right now, there is an even bigger war between these two countries. And this war is for the future. Whoever controls 5G, is going to have an enormous strategic advantage in the future. The US is worried that if it does not win the race to 5G, it may never become/remain a superpower. In this respect, it is somewhat comparable to the space race with the Soviet Union back in the 50s’.
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But what exactly is the big deal with 5G?
You may just think 5G is like 4G, but then a little bit faster. Correct. But it is actually a lot faster. So fast in fact that the new world of 5G technology promises to transform our lives. Connecting millions of devices and enabling everything from driverless cars to remote surgery and smart homes. 5G’s lightning-fast technology will accelerate and interconnect everything. 5G is up to 20 times faster than the 4G most of us use today.
Downloading a 2-hour film using 3G will take about 26 hours. On 4G you’d be waiting 6 minutes. And of 5G you’d be ready to watch your film in just over 3 and a half seconds.
It is not about the download speed of your favorite movies
So why do China and the US care so much about who makes 5G? (and why go to war over it?) It’s actually quite simple. First of all, money. When the US won the 4G race this decade, it provided a merely USD 100 Billion boost to GDP. The stakes of the 5G race are even higher. If the US wins, it would create an estimate of 3 million jobs, and add approximately USD 500 billion to GDP.
But it isn’t just about money alone. It’s also about power. If you control 5G, you have access to all that people are doing online, which is practically everything. Right now, the best 5G technology is made by a Chinese company based in Shenzhen (South China). And because the Chinese company is ….. Chinese, many governments don’t trust how secure the technology is going to be.
The Chinese company is known to most for its mobile phones, but it is also a leading player in building the infrastructure for all our communications. Critics fear that allowing it to build 5G, could enable the Chinese state to spy on, or even switch off, the flow of data we will all depend on. The thought of China spying on everyone is terrible. Not just because that is what the US also wants to do, but because the US wants to do it first. The stakes are high. Money, jobs, and power.
While the US is developing its own 5G, China’s 5G is light-years ahead. They are basically going to set the trends. Like history teaches us, setting the trend is key. There are many tales about forgotten tech (irrespective of their superiority). A few “close to home” examples: VHS vs Betamax, LaserDisc vs DVD. And the last significant disc technology standard battle fought in the home was between Blu-ray and HDDVD. And if you wonder what HDDVD or LaserDisc is? Exactly. Gone. Forgotten. And that, according to critics, is the US’ 5G. It has already lost the race. Unless, for reasons of national security, US companies are to be banned from using telecom equipment from a Chinese manufacturer.
But is this tactic going to be successful? Most likely not. By crippling China, the US will not have its own great 5G overnight. Unless it adopts the practices of AT&T, which puts a dummy 5Ge logo on its 4G network for iPhones and iPads using iOS12.2. Interesting concept. But as it doesn’t boost the speed, it leaves consumers disappointed.
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Featured image: Lujiazui (best known for its remarkable skyline of shimmering skyscrapers), is the central business district of Shanghai and one of the financial powerhouses of China.
In the posts the author(s) express(es) personal insights, expert views, and opinions with respect to the topic(s) discussed. Due to differences in interpretation, insights may (and will) differ.
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