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We’re letting China win the 5G race. It’s time to catch up. We’re letting China win the 5G race. It’s time to catch up.
(1 day later)
Henry M. Paulson Jr. is the former treasury secretary and chairman of the Paulson Institute.Henry M. Paulson Jr. is the former treasury secretary and chairman of the Paulson Institute.
England may have sparked the first industrial revolution with the steam engine, but its potential was realized in the United States. America led the second and third industrial revolutions — automobiles, computers and Internet — creating the foundation for U.S. economic superiority. England may have sparked the first industrial revolution with the steam engine, but its potential was realized in the United States. America led the second and third industrial revolutions — automobiles, computers and Internet — creating the foundation for U.S. economic superiority.
But today, with the advent of the fourth industrial revolution, the United States is falling behind.But today, with the advent of the fourth industrial revolution, the United States is falling behind.
While our universities and tech firms still lead in cutting-edge innovation — from artificial intelligence to 5G wireless technology — it is China that has deployed them. The United States is losing the commercialization race, a failure of our own making. We must urgently confront these shortcomings to make up for lost time and opportunity.While our universities and tech firms still lead in cutting-edge innovation — from artificial intelligence to 5G wireless technology — it is China that has deployed them. The United States is losing the commercialization race, a failure of our own making. We must urgently confront these shortcomings to make up for lost time and opportunity.
Powerful AI algorithms and machine learning techniques make everything faster and more efficient. If AI is the new “electricity,” then 5G is the transmission and distribution infrastructure needed to enable these technologies to perform optimally.Powerful AI algorithms and machine learning techniques make everything faster and more efficient. If AI is the new “electricity,” then 5G is the transmission and distribution infrastructure needed to enable these technologies to perform optimally.
This new “digital highway” centered on 5G will give rise to new industries and services previously unimagined. The United States must redouble its efforts to build such a digital infrastructure and make the commercialization of the Internet of Things a reality.This new “digital highway” centered on 5G will give rise to new industries and services previously unimagined. The United States must redouble its efforts to build such a digital infrastructure and make the commercialization of the Internet of Things a reality.
That’s because big data and AI algorithms require blazing fast networks to succeed. And the latest 5G mobile network will be 100 times faster than existing networks. Movies will take seven seconds to download instead of seven minutes. But more important will be the major efficiencies and disruptions across industries — from helping doctors perform remote surgery to processing images for driverless cars in real time. Any notable lag could mean the difference between life and death. That’s because big data and AI algorithms require blazing-fast networks to succeed. And the latest 5G mobile network will be 100 times faster than existing networks. Movies will take seven seconds to download instead of seven minutes. But more important will be the major efficiencies and disruptions across industries — from helping doctors perform remote surgery to processing images for driverless cars in real time. Any notable lag could mean the difference between life and death.
China is intent on realizing these goals. Beijing’s industrial policy and China’s private sector are racing to propel the commercialization of 5G and the technologies, products and services it enables, not only for China but also for nations around the world that would welcome Huawei 5G. Even China’s state-owned enterprises have deployed quickly. Meanwhile, Washington has stalled.China is intent on realizing these goals. Beijing’s industrial policy and China’s private sector are racing to propel the commercialization of 5G and the technologies, products and services it enables, not only for China but also for nations around the world that would welcome Huawei 5G. Even China’s state-owned enterprises have deployed quickly. Meanwhile, Washington has stalled.
When it comes to major breakthroughs, we must figure out how to shorten the lag between innovation and commercialization. Scale deployment is required with 5G. Small boxes, or microcells, must be placed on telephone poles or lamp posts to ensure robust network coverage, but U.S. firms face regulatory hurdles in this effort that their Chinese counterparts don’t. When it comes to major breakthroughs, we must figure out how to shorten the lag between innovation and commercialization. Scale deployment is required with 5G. Small boxes, or microcells, must be placed on telephone poles or lampposts to ensure robust network coverage, but U.S. firms face regulatory hurdles in this effort that their Chinese counterparts don’t.
Speed matters because deploying a reliable and secure 5G network quickly creates a first-mover advantage and results in the commercialization of myriad products and services. China could erect some 150,000 base stations by the end of the year, about 15 times what the United States will have. Speed matters because deploying a reliable and secure 5G network quickly creates a first-mover advantage and results in the commercialization of myriad products and services. China could erect some 150,000 base stations by the end of the year, about 15 times what the United States will have.
America has no domestic manufacturer of 5G equipment, so it must rely on European or Chinese suppliers. China already has Huawei and ZTE, the biggest 5G equipment suppliers in the world, allowing it to move to market quickly. In China, 5G is already available in more than 50 cities, while in the United States there is only 5G E, which is no substitute for a truly competitive 5G network. America has no domestic manufacturer of 5G equipment, so it must rely on European or Chinese suppliers. China already has Huawei and ZTE, the biggest 5G equipment suppliers in the world, allowing it to move to market quickly. In China, 5G is already available in more than 50 cities, while in the United States there is only 5G E, which is no substitute for a truly competitive 5G network.
We need a catch-up strategy to close this gap quickly. And it’s time for an honest assessment of how our government has let our innovators and businesses down.We need a catch-up strategy to close this gap quickly. And it’s time for an honest assessment of how our government has let our innovators and businesses down.
Erecting an economic iron curtain, as some policymakers are calling for, won’t halt Beijing’s progress — nor will it energize ours. Washington needs to focus not simply on trying to slow China down, but on accelerating efforts at home. Erecting an economic iron curtain, as some policymakers are calling for, won’t halt Beijing’s progress — nor will it energize ours. Washington needs to focus not simply on trying to slow China down but on accelerating efforts at home.
For instance, much of the needed spectrum for 5G is still used for military purposes or satellites, leading to carriers and the FCC battling over spectrum allocation. Rather than acting as a brake, Washington must put its foot on the gas, allocate funding to support 5G and find ways to offset the higher cost of rolling it out. In addition, our manufacturers must be ready for the ride. It is not only about retraining workers but also expediting new products and services to market that will benefit from the Internet of Things.For instance, much of the needed spectrum for 5G is still used for military purposes or satellites, leading to carriers and the FCC battling over spectrum allocation. Rather than acting as a brake, Washington must put its foot on the gas, allocate funding to support 5G and find ways to offset the higher cost of rolling it out. In addition, our manufacturers must be ready for the ride. It is not only about retraining workers but also expediting new products and services to market that will benefit from the Internet of Things.
Importantly, the United States should renew its commitment to technological and scientific excellence by raising and sustaining federal funding for research and development to at least 1 percent of gross domestic product. We must also increase investment in our nation’s scientific infrastructure, including innovation labs that can develop the latest digital technologies.Importantly, the United States should renew its commitment to technological and scientific excellence by raising and sustaining federal funding for research and development to at least 1 percent of gross domestic product. We must also increase investment in our nation’s scientific infrastructure, including innovation labs that can develop the latest digital technologies.
And the United States must do more to attract and retain the world’s best talent. We cannot continue to push away the best scholars and students with harsh rhetoric and an antiquated immigration system.And the United States must do more to attract and retain the world’s best talent. We cannot continue to push away the best scholars and students with harsh rhetoric and an antiquated immigration system.
Above all, we must remain open. That has always been our national comparative advantage.Above all, we must remain open. That has always been our national comparative advantage.
Rather than forfeiting the fruit of this industrial revolution even before it has ripened, the United States needs to capitalize on it. We must learn the lessons of the 5G fumble, or we will forfeit our economic future. The race will be long, but with the right strategic focus and policies in place, the United States can protect its national security without ceding its leadership to China in emergent technologies.Rather than forfeiting the fruit of this industrial revolution even before it has ripened, the United States needs to capitalize on it. We must learn the lessons of the 5G fumble, or we will forfeit our economic future. The race will be long, but with the right strategic focus and policies in place, the United States can protect its national security without ceding its leadership to China in emergent technologies.
Read more:Read more:
David Ignatius: The U.S.-China trade war is cooling off. But the tech war is heating up.David Ignatius: The U.S.-China trade war is cooling off. But the tech war is heating up.
John Pomfret: A deeper tech concern is at the core of the U.S.-Huawei spatJohn Pomfret: A deeper tech concern is at the core of the U.S.-Huawei spat
Tom Cotton and John Cornyn: Keep the Chinese government away from 5G technologyTom Cotton and John Cornyn: Keep the Chinese government away from 5G technology
Josh Rogin: On 5G, the United States is building Betamax while China builds VHSJosh Rogin: On 5G, the United States is building Betamax while China builds VHS