5G Fight With China: Politicization Leads to Suboptimal US Outcome

Journal of Political Risk, Vol. 7, No. 4, April 2019

The photograph depicts a man wearing a virtual reality headset.

A customer wearing a headset plays a virtual reality (VR) game, 2018. Source: Marco Verch via Flickr.

Anders Corr, Ph.D.
Publisher of the Journal of Political Risk

The Federal Communications Commission (FCC) announced a national 5G auction of large slices (up to 3.4 gigahertz) of the millimeter wave (mmWave) spectrum, along with $20.4 billion in subsidies over 10 years for rural connections, on April 12. The plan ignores expert cyber-security advice, has major security, timing, strategic and financial problems, and will not facilitate new competitors in the telecommunications market. The announcement by President Trump and FCC Chairman Ajit Pai, likely under the influence of telecommunications lobbyists, was a surprise to most experts and took place with no real public input. The auction of the mmWave spectrum is set for December 10. At the press conference announcing the decision, Chairman Pai thanked Director of the National Economic Council Larry Kudlow and Ivanka Trump for their assistance, with Ms. Trump giving a speech in support of the plan.

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President Trump Has Authority to Rebuild American Industry: Use the Defense Production Act of 1950

Journal of Political Risk, Vol. 7, No. 3, March 2019

William R. Hawkins
International Economics and National

Security Consultant

Two aircraft carriers are photographed from above in the ocean.

The aircraft carriers USS Dwight D. Eisenhower (CVN 69), top, and USS Harry S. Truman (CVN 75) transit the Arabian Sea. Source: U.S. Navy via Flickr.

President Donald Trump’s trade reform campaign is not meant only to redress the massive deficit with the People’s Republic of China ($419 billion in goods last year, a net figure of how much American money is supporting jobs and production in China rather than at home). His policies have been rooted in national security concerns with a focus on the dangerous transfer of capital and technology that has empowered Beijing’s military buildup and aggressive behavior along the Pacific Rim and beyond. There is concern that the momentum of his efforts is slowing. He delayed elevating tariffs on Chinese goods from 10% to 25% on March 1st to give negotiations more time to reach a deal. But the PRC regime will never curb its pursuit of the wealth and capabilities it needs to replace the U.S. as the world’s preeminent power. It is a long-term economic contest between rivals for the highest of stakes imaginable.

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A Chaotic Start: Foreign Affairs in the New U.S. Congress

US Secretary of State Mike Pompeo is photographed seated on the left and Nechirvan Barzani seated to the right. A gold coffee table is located between them. Another table with a flower arrangement appears in the foreground.

US Secretary of State Mike Pompeo meets with Nechirvan Barzani, outgoing Prime Minister of Iraq’s autonomous Kurdistan Regional Government (KRG), in the province’s capital Arbil during a Middle East tour on January 9, 2019. The eight-day tour comes weeks after the US President announced that the United States would quickly pull its 2,000 soldiers out of Syria, declaring that IS — also known as ISIS — had been defeated. Source: US Department of State via Flickr.

Journal of Political Risk, Vol. 7, No. 2, February 2019

William R. Hawkins

International Economics and National Security Consultant

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