(Dan Tri) – President Donald Trump’s restriction on American companies selling components to Huawei has created a direct blow to the weakest point of the giant telecommunications corporation considered China’s pride.
President Donald Trump (Photo: Getty)
Citing reasons related to national security, President Donald Trump last week banned American companies from providing Huawei and its affiliates with essential components to help the Chinese giant.
According to AFP, President Trump’s `blow` will harm American companies that rely on Huawei as a potential customer to sell components.
Analysts say the US government’s move has hit Huawei’s weakest point, which is too much dependence on US components.
“The worst case scenario would see Huawei completely cut off from access to US technology.
The ban on technology access for Huawei is the result of months of US efforts to isolate Huawei in a context where Washington still suspects that the corporation has close connections with the Chinese military, allowing North
The risks posed to Huawei became even more noticeable this week when Google, the provider of the Android operating system for most of the world’s smartphones, announced it would cut ties with Huawei due to the government’s ban.
`This is a relatively big setback for Huawei’s smartphone segment,` said Ryan Whalen, professor at the Center for Law and Technology at the University of Hong Kong.
Huawei said the corporation is building its own operating system, but Professor Whalen noted that the pincer position of the two leading operating systems today, Android and IOS, is almost impossible to break.
“Look at Nokia, Blackberry and Microsoft, all of whom have recently failed in similar efforts,” Mr. Whalen said.
Telecommunications equipment
A Huawei store (Photo: Getty)
Another important business branch of Huawei is providing telecommunications equipment to carriers around the world.
According to The Nikkei daily, Huawei buys about $67 billion in components each year, including about $11 billion from American suppliers.
Eurasia Group said major US component suppliers, including chip makers Qualcomm, Qorvo and Texas Instruments and software firms Oracle and Microsoft, stopped supplying Huawei until everything was resolved.
President Xi Jinping previously developed plans for China to gain a dominant position in key high-tech industries before 2025. The US believes this is an alarming strategy.
According to Roger Kay, founder and analyst at Endpoint Technologies Associates, the US’s tough moves against Huawei could give this group more motivation to change.
“The long-term impact is that Huawei and other Chinese companies will turn away more decisively from American suppliers,” Mr. Kay predicted.
Huawei founder Ren Zhengfei sought to allay any fears.
Eurasia Group said that even if Huawei has any chip stockpiles, the group `cannot stockpile software and there is no feasible way for Huawei to survive for a long period of time without
President Trump can use Huawei as leverage in trade negotiations with China when US officials have just announced a postponement of the ban on Huawei for 90 days.
Apple, Huawei’s rival in the smartphone segment, could be severely damaged if China strikes back at the US because nearly 20% of Apple’s orders are in China.
Another `chess piece` in the confrontation between the US and China is Europe – where Huawei has large business contracts with carriers.
The US realizes that it is necessary to prevent Huawei’s presence in Europe by citing cybersecurity reasons.
Germany, France and the Netherlands do not want to bow to US pressure to turn their backs on Huawei.
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