White Paper Trade Rules and the Digital Economy Key Points and Findings

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Huawei | Trade and the Digital Economy | White Paper Key Points and Findings 4 Huawei has much to contribute to this dialogue Precisely because of our size, the breadth of our activities and the extent of our reach, we at Huawei are uniquely positioned to offer insights into what rules are likely to contribute towards an optimal trade regime for the digital economy. In addition to these attributes, we at Huawei are fortunate to count among our 170,000+ employees, dedicated experts on global trade rules based in Shenzhen as well as in important regional trade‐policy capitals such as Brussels and Washington DC. We are in a position and at a unique moment in time where we can provide thought leadership on these important emerging issues. 5 Huawei's interests are broadly aligned with the rest of the global ICT industry We at Huawei are deeply entrenched in global digital value chains and have long been working closely with suppliers, partners, customers and other stakeholders in many countries, and across many different product and services markets within the digital economy. As such, we are undeniably a significant part of the global ICT industry, and our prospects rise and fall in conjunction with the general welfare of the global ICT industry as a whole. This means that what’s good for the global ICT industry and for the digital economy is almost certain to be good for Huawei, and what’s bad for the global ICT industry and the digital economy in general is likely not going to benefit Huawei either. As the saying goes: “a rising tide lifts all boats” and this saying is very applicable when it comes to policies, measures and trade rules that have an impact on trade flows in the digital economy. 6 We all win in a world where the internet is global, open and accessible Disproportionately restrictive policies enacted for protectionist purposes or without taking into account the realities of the global internet are likely to create negative externalities both within and beyond the borders of the authorities that enact them. In the same way, trade rules that promote an open, accessible and global internet promote the exchange of ideas, grant open access to the latest ideas and innovation and provide a global public good that benefits the whole ICT industry and all players in the digital economy, including Huawei. 7 Governments must and will remain the arbiters of the public policy exception Huawei recognizes and is completely supportive of the very important role governments can and must play as watchdogs and overseers of the public interest. We also recognize that governments must act when doing so is required to safeguard legitimate public policy interests. However, like many in the industry, and as governments have recognized in fora like APEC, the OECD and the G20, the invocation of public policy exceptions should be done in good faith and subject to certain agreed limiting principles, such as proportionality, least‐trade restrictiveness of measures, and the effectiveness of any measures taken in achieving the purported public policy objectives for which they were imposed 21
Chapter Six | Findings and Conclusions 8 National security is vital but cannot be used to justify every policy intervention We live in a world today where both the public at large as well as governments have become increasingly aware of not only the benefits of an increasingly connected world, but also the risks that increased interconnectivity brings with it. As such, governments are legitimately starting to take a broader and deeper view of what constitutes critical national infrastructure and are becoming increasingly vigilant against potential cybersecurity threats. Be this as it may, we believe that the national security exception cannot be used as a blank check to justify measures that are essentially protectionist in intent and nature. This is a very sensitive topic, and we also recognize that it must be treated as such. Equally, it should be subject to disciples which are agreed and reviewable. 9 Regardless of who exercises leadership, these rules ultimately belong in the WTO We view the different initiatives to develop new rules in the context of various FTAs and plurilateral initiatives as a very positive development that we wish to wholeheartedly support. We also recognize that a strong and effective body of rules governing much of the economic activity in the digital economy already exists in the form of the WTO Agreements. The application of those “analog rules” in today’s digital economy has been highlighted. Given the WTO’s track record in the negotiation and enforcement of these rules, we view it as essential in the medium to long term that any new or updated rules that are enacted to govern the digital economy be brought under the auspices of the WTO and particularly its overriding principle of most‐favored nation and its dispute settlement procedures. 22
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White Paper Trade Rules and the Digital Economy Key Points and Findings

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