A future 5G divide may open between the US and its allies, and most of the rest of the world. Should a handful of developed nations shut out Huawei and others, those countries may have to settle for a network lacking cutting-edge technology.

The U.S. has been pressuring European nations to block Huawei technology. However, unlike the U.S., Europe as a whole does not perceive China as its strategic rival. Stakes are high for Huawei to prove its good faith, but equally high for Europe, which will deal with significant economic repercussions for lagging behind in 5G.

The case involving Meng Wanzhou’s extradition to the U.S. illustrates the precariousness that U.S. allies must face when balancing their relations with the U.S. and China.

A technological cold-war seems to have arisen alongside the China-US trade war, but this may not be a sustainable long-term strategy. If this continues, wagers of the tech cold war can expect to face consequences.

If Chinese companies succeed in designing and deploying key technologies for 5G systems, they may reap a whirlwind of profits from not only the communications arena, but from a multitude of new technologies. Should China win the race for 5G, companies from the PRC could cut into the profits of American technology firms, and weaken their ability to develop cutting-edge products in related fields.

Companies around the world are already racing to develop the necessary 5G network technology, leading to new technological tensions between the U.S. and China. Given the continued demand for high-speed wireless connectivity and mobile devices, there’s a lot at stake for the companies that get 5G technology right and ultimately end up driving its deployment.