In early 2020, the CCP was on the verge of taking over 5G — smartphones, utility grids, power generation and more. Huawei, the backbone of the CCP’s surveillance state, looked unstoppable. Both sides of the aisle hit the panic button. To turn the tide, a new kind of diplomacy was needed — one that would combine the strengths of Silicon Valley and the State Department.
CCP’s 5G Masterplan
Both Sides of the Aisle Hit the Panic Button
A Different Kind of Diplomacy is Needed
Nancy Pelosi Warns europe about HuaweiFeb 14, 2020
Huawei boasts about Worldwide distributionFeb 20, 2020
Schumer urges UK: Reject HuaweiMar 3, 2021
The Clean Network team was charged with creating and operationalizing a global economic security strategy to drive economic growth, maximize national security and combat the Chinese Communist Party’s economic aggression.
The Clean Network team created a playbook to detail their Vision, Mission, Principles, Objectives, Strategy, and Execution. In government there is often a gap between policy and execution. The Playbook helps close that gap.
The Clean Network Playbook
Clean Network Team Creates a Playbook – Just Like in Silicon Valley
When Krach appeared before the Senate Foreign Relations Committee, he was asked what his strategy would be for combating the CCP’s economic aggression. His team’s mission statement was built around his answer.
Harness US Competitive Advantages to Combat
CCP Economic Aggression
“What’s your strategy for combating CCP aggression?”
“I would harness the 3 biggest areas of U.S. competitive advantage by rallying our allies and partners, leveraging the innovation and resources of the private sector, and amplifying the moral high ground of democratic values.”
The team’s vision was to build an alliance of like-minded countries, companies and civil society that operate by a set of trust principles for all areas of economic collaboration, to advance freedom and stand up against authoritarianism.
The Clean Network: An Alliance of Countries, Companies and Civil Society that Operates by a Set of Trust Principles
in All Areas of Economic Collaboration
In 60 meetings with economic ministers, finance ministers, and foreign ministers, Krach asked, “How’s your relationship with China?” They would reply, “China is a very important trading partner…” But then they would glance around furtively, and add, “…But we don’t trust them.” The key to defeating China Inc.
They Key To Defeating China, Inc: Trust
Defeating China’s 5G plan was just the beginning. The team created an enduring model that could be repeated in other industries; built an alliance to stand against the CCP’s aggression; and established a beachhead for all areas of economic competition.
Defeating China’s 5g Masterplan Is Just The Beginning
Defeat CCP’s 5G masterplan and open the market for new entrants
Deliver a proven and enduring model to compete with China Inc.
Build an alliance of countries and companies to stand against CCP aggression
Use 5G as a beachhead for all areas of economic competition
The Clean Network team’s strategy combined the best of Silicon Valley’s genius for innovation and entrepreneurship with the tried-and-true playbook of the U.S. State Department to create Tech Statecraft. Click “Learn More” to explore the details of the team’s strategy
Tech Statecraft Strategy
Strategies From Silicon Valley And The State Department
Combine To Create “Tech Statecraft”
With lightning speed, the E-team reversed Huawei’s momentum and decisively defeated China, Inc.
Silicon Valley partner tour
Krach hosts a dinner at his home, introducing Secretary Pompeo to top Silicon Valley CEOs. They express their China concerns. Krach introduces the idea that corporate responsibility is not only social responsibility – it’s national security.
At Krach’s 20th Davos conference, now as Under Secretary of State, he worked to rally stakeholders to come together in areas of digital infrastructure, energy, research, investment, trade, and commerce–operating under a set of shared trust principles.
UK Opens the Door to Huawei
UK’s decision to allow Huawei equipment for its 5G network sparks tensions with U.S. Washington maintains that Huawei represents a national security threat because its networking gear could be used by the Chinese government for espionage.
Nancy Pelosi warns Europe on Huawei
Pelosi warns letting Huawei into Europe is to “choose autocracy over democracy.” She states, “If we were to let Huawei have the information-highway dominance, it would be like putting the state police in the pocket of every person who uses that highway.”
Huawei Boasts About Contracts
Huawei president Ryan Ding boasts, “We have 91 commercial 5G contracts worldwide, including 47 from Europe,” Ding claims, “One year ago, I said we are leading by 18 months ahead of our competitors in 5G technology. Now, we still maintain that leadership.”
Schumer urges UK: Reject Huawei
Chuck Schumer (D-NY) urges UK to reconsider its Huawei position. “Given the significant security, privacy, and economic threats posed by Huawei, we strongly urge the United Kingdom to revisit its recent decision, take steps to mitigate the risks of Huawei.”
Authority to Act
While many leaders believe it’s too late to turn the tide on Huawei and the CCP, Krach’s E team is granted legal authority by executive order and under the National Defense Authorization Act to take action and coordinate U.S. government actions on semiconductors and 5G.
Silicon Valley strategy meetings
Krach meets with key semiconductor equipment manufacturers and other leaders in Silicon Valley to discuss strategy for reversing China’s domination of 5G.
5G Trifecta: Clean Path
Secretary Pompeo announced that, as part of the 2019 National Defense Authorization Act, the State Department will require a “Clean Path” for all standalone 5G network traffic entering and exiting U.S. diplomatic facilities at home and abroad.
5G Trifecta: $12 Billion TSMC Plant
In just 2-weeks, Krach’s team secures agreement with TSMC, the world’s most sophisticated semiconductor manufacturer, to build $12 billion chip fab in Arizona. Begins to reverse Huawei momentum & sets the stage to rebuild US semiconductor industry.
5G Trifecta: No US Chips to Huawei
The State Department and Commerce Department block Huawei access to chips produced using U.S. software or technology, including chips from TSMC. This move is so successful, it forces Huawei to sell its 5G smartphone business six months later.
Canadian telcos ban Huawei
Canadian telcos, Bell and Telus announce that each of them will discontinue use of Huawei equipment in their 5G networks. The companies sign deals with Nokia and Ericsson instead.
Telefónica joins Clean Network
Telefónica CEO María says, “Telefónica is proud to be a 5G Clean Network company. Telefónica Spain and O2 (UK) are fully clean networks, and Telefónica Deutschland (Germany) and Vivo (Brazil) will be soon without equipment from any untrusted vendors.”
12 more countries join Clean Network
Krach welcomes the Czech Republic, Norway, Poland, Estonia, Romania, Denmark, Greece, New Zealand, Japan, Australia, Israel, and Latvia into Clean Network.
Huawei excluded from Singapore 5G network
Huawei Loses Out in Singapore 5G Bid. Singapore finalizes 5G contract winners, Nokia and Ericsson named as suppliers.
Krach warns of CCP genocide
In a July 4th interview with Neil Cavuto, Secretary Krach warns about brands benefiting from slave labor in China, and the growing problem of genocide being committed against the Uighurs in Xinjiang.
UK support for Clean Network
The United Kingdom announces plans to ban Huawei from future 5G networks. Specifically, UK mobile providers are being banned from buying new Huawei 5G equipment after December 31.
US Applauds UK move
US hails Britain’s move to ban Huawei and join Clean Network. National security advisor, Robert O’Brien, wrote on Twitter that Britain’s move showed a “growing international consensus” that Huawei and other companies “pose a threat to national security.”
Huawei banned in France
French authorities have told telecoms operators planning to buy Huawei 5G equipment that they won’t be able to renew licenses for the gear once they expire, effectively phasing the Chinese firm out of mobile networks.
Pompeo urges nations to become “Clean Countries”
An address at the Nixon library, Secretary of State Pompeo urges countries to become Clean Countries so that their citizens’ personal information doesn’t end up in the hands of the Chinese Communist Party.
Clean Network expansion into more tech areas
Secretary of State Mike Pompeo announces the expansion of the Clean Network with the launch of five new lines of effort. Clean Carrier, Clean Apps, Clean Store, Clean Cloud, and Clean Cable.
TikTok and WeChat banned by executive order
The President signs two Executive Orders exercising his authority under the International Emergency Economic Powers Act (IEEPA) to address the threats posed by apps such as TikTok and WeChat.
Clean Network grows
Clean Network grows to 30 Countries and Territories along with largest telcos: Orange (France), Reliance (India), Telstra (Australia), SK and KT (Korea), Cosmote (Greece), NTT (Japan), O2 (UK) and all telcos in Canada, Norway, Vietnam, and Taiwan.
Clean Network at 30 countries
The US State Department called on its allies and partners in government and industry around the world to join the growing tide to secure data from the CCP’s surveillance state and China’s Great Firewall and said “Momentum for The Clean Network is growing.”
India Phases out China equipment
India will remove Huawei equipment from its mobile networks as tensions grow between India and China over the disputed territory of the Himalayan Galwan Valley. The Indian government is concerned about Chinese investment in its networking infrastructure.
Krach’s historic visit to Taipei
Krach arrives in Taipei, becoming the highest-ranking State Department official to visit since 1979. Taiwan’s Ambassador to the U.S. Hsiao Bi-khim calls Keith Krach “Taiwan’s Number One Friend.”
Krach attended a memorial service for President Lee Teng-hui, father of democracy in Taiwan. He also met with business leaders and top government officials, held discussions on creating a new economic dialogue, and welcomed Taiwan into the Clean Network.
Clean Network Europe tour
European Clean Network tour begins, with the goal of building a Transatlantic Clean Network. Beginning in Luxembourg, Krach addresses the Clean Network initiative, 5G security, and financing economic growth rooted in trust.
Estonia commits to Clean Network
Krach meets with Estonian President Kaljulaid. They discuss cooperation in securing critical telecommunications infrastructure and ensuring clean technology supply chains. Estonia commits to EU 5G Clean Toolbox and 5G Clean Path.
Austria joins, elevates partnership
Krach and Austrian Federal Minister Köstinger elevate US-Austria partnership and safeguard 5G from “high-risk” vendors through the Clean Network and the EU 5G Clean Toolbox.
NATO is for 5G Clean Network
NATO Deputy Secretary General Mircea Geoana seeks 5G Clean NATO Network, citing the strategic importance of having a secure network which is non-fractured, because, he said, “the Alliance is only as strong as its weakest link.”
Clean Network And Eu 5G Clean Toolbox Agreement
Krach and EU Commissioner Breton issue statement on synergies between Clean Network and EU 5G Clean Toolbox. Breton emphasized the importance of EU/US cooperation in securing telecom infrastructure.
Portugal joins Clean Network
Krach notes, “The countries I’ve been to so far in the European Union certainly understand [the Huawei risk]. I think they’ve done an excellent job with the EU’s 5G toolbox, which regulators here in Portugal shared that they would follow.”
Spain joins Clean Network
Krach meets with Spain’s Secretary of State for Telecommunications, Roberto Sánchez about the need to guarantee the security of vital networks. Sánchez commits to EU 5G Clean Toolbox, joins Clean Network.
Albania supports Clean Network
Albania’s Prime Minister Rama commits to 5G Clean Path. Krach and Finance Minister Denaj sign Memorandum of Economic Cooperation.
Ban of Huawei in Germany
Germany prepares legislation that will effectively ban Huawei from its 5G network. Merkel responds to opposition from across the German political spectrum and within her own party.
Luxembourg and Belgium reject Huawei
Luxembourg and Belgium announce replacement of Huawei, join the Clean Network.
Belgium joins Clean Network
The Belgian capital, Brussels, is home to the European Union’s executive body and had been 100% reliant on Chinese vendors for its radio networks. Belgium has now awarded their 5G contracts to Nokia to complete their transition to a Clean Country.
Transatlantic Clean Network
The Clean Network has now grown to over 40 Clean Countries, and 50 Clean Telcos. Krach declares, the tide has finally turned, and “NATO is now ‘in sync’ on 5G security.”
Clean Network expands
The Clean Network adds tech giants Oracle, HP, NEC, Fujitsu, Cisco, NTT, Siemens and VMware.
Ericcson innovation center
Krach visits Ericcson innovation center in Tallinn, Estonia. This facility, along with the 5G smart manufacturing center in Texas, provide the world with Clean Network alternatives to high-risk vendors like Huawei and ZTE.
Cyprus joins Clean Network
Cyprus’ Minister for Digital Policy, Kyriacos Kokkinos, signs MOU expanding science and technology cooperation. According to Krach, “The Republic of Cyprus has the potential to be a regional hub for innovation and tech services.”
Three Seas nations support clean network
Three Seas member states announce support for Clean Network. Krach applauds President Kaljulaid’s vision of trusted collaboration among all Three Seas member states.
Slovak Republic becomes a Clean Network country
Slovak Republic signs Joint Declaration on 5G Security, joins Clean Network. The declaration states, “Protecting communications networks… and ensuring the privacy and individual liberties of the citizens of the Slovak Republic… are of vital importance.”
3 more countries join
Krach signs Clean Network agreements with North Macedonia, Kosovo, and Bulgaria. Says Krach, “This memorandum is vital for prosperity, national security, and economic development.”
Bahrain telecommunication is safe
US certifies two out of three Bahrain telecom operators “totally clean,” after pointing out that in the area of 5G, the CCP is a serious threat to Bahrain’s sovereignty and national security.
Clean Network countries account for 2/3 Global GDP
Clean Network reaches 49 countries, 2/3 of world GDP. “Countries and companies are asking, ‘Who do we trust?’” Krach said. “It’s certainly not Huawei.”
Latin America tour
Krach’s Clean Network team visits Brazil, Chile, Ecuador, Panama, & Dominican Republic to offer a more compelling alternative to Huawei 5G.
Brazil Joins Clean Network
Brazil becomes 50th Country to join Clean Network. “Brazil supports the principles contained in the Clean Network proposal made by the United States,” said a joint U.S.-Brazil statement issued after Krach met with Brazilian foreign ministry officials.
Ecuador joins Clean Network
Ecuador joins Clean Network. — Fernando Flores, President, Committee on Natl Security.
Dominican Republic joins Clean Network
President Abinader announces Dominican Republic joins Clean Network.
Huawei forced to sell its Honor phone business
Huawei Sells Honor Phone Business as U.S. sanctions bite. State-led consortium takes over budget brand as Chinese tech company blames pressure from U.S. curbs on its supply chain
Ukraine joins Clean Network
“Ukraine joins NATO, EU, OECD, and 3 Seas on the Clean Network,” Prime Minister Shmyhal.
Nauru joins Clean Network
Nauru President Aingimea: “The Clean Network provides a trusted foundation to secure the most sensitive information”.
Palau joins Clean Network
“Palau is excited and proud to join the Clean Network.” President Remengesau.
Georgia Joins Clean Network
US, Georgia sign Clean Network MOU on 5G cooperation. “As Georgia aspires to join NATO, an improved security network will certainly be another positive aspect of the membership debate,” according to Krach.
Clean Network Opens New Africa Beachhead in Ethiopia
Ethiopia rejects Huawei, consistent with Clean Network. Vodafone-led group with financial backing of the International Development Finance Corp wins contract to build a nationwide 5G-capable wireless network.
A key Silicon Valley principle:
Speed is the ultimate weapon.
Explore the timeline to see how Krach’s team reversed Huawei’s momentum and racked up an amazing number of wins – growing the Clean Network to 60 countries and 2/3 of global GDP in just a matter of months.
Clean Network Results
A BREATHTAKING VICTORY FOR FREEDOM VS. AUTHORITARIANISM
- Defeat the CCP’s 5G masterplan
- Create a proven, enduring model
- Build alliance to stand against authoritarianism
- Establish beachhead for all areas of competition
- Defeat the CCP’s 5G masterplan
- Create a proven, enduring model
- Build alliance to stand against authoritarianism
- Establish beachhead for all areas of competition