The 5G Geopolitical Order: Lessons for Corporate Diplomats

Up until few decades ago, international politics used to be defined by geopolitical constraints and military power. Not anymore. Welcome to the era of 5G.

The debate around the 5G infrastructure has been among the most popular topics of international politics in recent years. It is a controversial issue due to the involvement of Chinese telecoms company Huawei, which the US government thinks will compromise the security of the Western governments. Most recently, the British Government allowed Huawei to play a limited role in its next generation 5G mobile networks, despite the pressure by the US administration.

For Corporate Diplomats, there are many lessons to be learned about how to understand the new global order and make business decisions accordingly.

5G and Huawei in a Nutshell

First, let’s look at why 5G matters. Here is how the European Commission answers this question: “As a major enabler for future digital services, 5G will play a key role in the development of our digital economy and society in the years to come. From personalised medicine to precision agriculture, from smart energy grids to connected mobility, 5G will potentially affect almost every aspect of [EU] citizens' lives. […] Therefore, ensuring the security of the EU's future 5G networks is of utmost importance.” Simply put, the future will be built on 5G network. It will not only be a part of our lives, but also a major pillar of our security.

Second, let’s recap why there are suspicions about Huawei. The main concern is the the Chinese company can make backdoors in its technology, through which the Chinese government can get access to information. According to the Guardian, “much of the doubt surrounding Huawei stems from founder Ren Zhengfei’s time as an engineer in the China's People’s Liberation Army from 1974-83. His daughter Meng Wanzhou, a senior Huawei executive, was arrested in Canada in December 2018 over allegations of Iran-sanctions violations.”

The Geopolitics of 5G

As recent developments demonstrate, 5G is not only a matter of mobile network development. It is the foundation of the new geopolitical order that is built on technology and data privacy. Around the globe, many countries debate how to regulate data privacy while benefiting from the tools that international technology companies provide. The remarks by the US Secretary of State Mike Pompeo that “only nations able to protect their data will be sovereign” summarizes the new geopolitical or

der.

However, there are disagreements about how governments should approach the Chinese inroads into the Western 5G mobile network. Britain’s intelligence agencies have the position that any risks from Huawei can be contained, while Washington believes Huawei poses a spying risk as an arm of the Chinese state. Angela Merkel is also under pressure by the German Parliament to exclude the Chinese company from the country’s 5G network. The compromise by the UK government allows that “U.K. will not become nationally dependent on a high risk vendor while retaining competition in the market,” says U.K.’s National Cyber Security Centre.

What Lessons for Corporate Diplomats

There are many lessons for corporate diplomats that can learn from the 5G saga:

- Understanding the new global order is only possible if corporate diplomats get a good understanding of the technology and its impact on national policies of countries.

- Data privacy and localization will be on the agenda of governments for many years to come.

- China has emerged not only as a geopolitical and economic power, but also a leading player in technology sector. Dealing with Chinese technology will come with its risks.

- Partnership between private companies and governments will have implications not only in certain countries, but also at international level.

- Corporate diplomats should follow these developments closely and coordinate with their business units to coordinate the corporate strategy of their companies.