Trump is Right About this Company - Dylan Jovine

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Trump is Right About this Company

APRIL 25, 2019

Trump is Right About this Company

“CARTHAGE MUST BE DESTROYED!”

That’s how Roman Senator Cato the Elder finished every speech he gave in the Senate during Rome’s fight with Carthage for mastery of the Mediterranean.

Carthage was the established power. Rome was the rising power. Rome wanted the number one spot and after a 118-year struggle they got it.

“CHINA MUST BEAT THE U.S.”

That’s what I imagine China’s leading statesman say to each other.

Of course, they don’t say it in public. But they do say it.

How can I tell? Look to their actions.

Let me use wireless 5G standards as an example:

Right now, the wireless internet is run on something called a 4G or fourth generation broadband cellular network.

Whenever you use your cell phone to make a call or surf the web, you’re doing it via an intricate web of routers, wireless towers and bandwidth.

This web of interconnected devices (the Internet of Things) is on its fourth generation of technology, which is why its called 4G.

Currently, the United States and our European partners own the companies that run the worldwide 4G network.

And why not? Our companies (i.e. Cisco, Nortel Networks, Dell, Qualcomm, etc) literally invented the technology to do it.

China can’t do anything about the current infrastructure. It’s already too established.

But they’re trying to do everything in their power to dominate the roll-out of the fifth-generation broadband cellular network, or 5G.

Why is 5G so important?

Because 5G is the technology that is going to make things like self-driving cars possible.

It allows for more data to move wirelessly and at a much faster rate than 4G technology.

In other words, it’s the future. And trillions of dollars will flow to the companies inside whichever country controls it.

And every company in any country has a right to fight and compete to win the business. Fair enough.

But here’s how Communist China’s been fighting that battle…

The government tells corporate China what industries it wants them to dominate by 2025.

The government helps corporate China steal the advanced technologies needed to dominate said industries.

The government subsidizes corporate China’s push into new markets, pushing their companies to sell at a loss if it means getting a foothold in important industries.

What companies benefit most from this policy? Companies like Huawei.

That’s why Huawei’s been fighting so hard to win 5G business in places like Europe. They’re trying to make the government happy.

But that’s not even the worse part.

The national security implications of letting China control the basic technology that governs the communications infrastructure for NATO are dire. For example, China could shut off our entire communications networks in the event of a conflict.

Fortunately for us, President Trump knows what China’s really up to. That’s why he’s been so consistent in the pressure he’s keeping on them. It’s also why he’s been putting so much pressure on our allies not to let companies like Huawei build their 5G infrastructure.

But whether this particular conflict ends quickly or not is really beside the point.

The point is that China is making its bid for world power. It’s officially making its move.

And that means that the 21st Century will be defined by the conflict between the West and China.

What does that mean for the West?

It means that all Americans better get serious about the threat we face from China.

“The Buck Stops Here”

Dylan Jovine

Behind the Markets

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