Huawei vs. Trump: Breakdown of how the story has outstretched
- As reported by Forbes, from the year 2016 to 2018, Chinese investment into the U.S. declined by almost 88% to $5.4 billion and is expected to dry up further in the future.
- The license which lets the Chinese tech giant to buy segments from American companies to serve its current customers was expected to be prolonged for 90 days by the U.S. Commerce Department, Reuters and the Wall Street Journal reports.
- According to The New York Times , Huawei would have become the largest and top global smartphone manufacturer in the fourth quarter of 2019 but now Hao Yang, chief strategy officer of Huawei Consumer Business Group admits that this process may take longer and wouldn’t happen by the end of 2019 as originally planned.
As per the FBI reports at CES 2019, World’s No. 1 telecom supplier and No. 2 phone manufacturer Huawei is considered outcaste in countries like the US. One of the biggest technology companies in China and second-largest smartphone seller in the world, behind Samsung but ahead of Apple, think Google’s name recognition and Verizon’s major role in US telecommunications. Over the time period of 2019, there’s been an increase in analysis of the Chinese telecom giant, with a number of countries banning the use of its networking components.
Many officials and experts in the US and around the world don’t think Huawei as an ordinary technology company as it has brought in more than $100 billion revenue last year. As per the Strategy Analytics reports of July 2019,Huawei beats I phone with 17% global market share which have basically been approved with a scarlet letter by the US government over national security fears.
U.S. President Trump effectively banned US companies from doing business with Huawei due to national security concerns that the company is too closely tied to the Chinese government. . It required American companies to get a license to do business with the Chinese telecom giant and the department of US Commerce Department blacklisted Huawei following an executive order from President Donald Trump .Huawei has also announced that it’s making its own mobile operating system
The US Commerce Department clarifies that it’s extending a temporary general license which allows American companies to do business with Huawei for another 90 days. Huawei says US license extension doesn’t change the fact that it’s being treated unfairly and Huawei is reportedly giving their staff $286 million as bonuses for sticking through US ban.
The UK general election has possibly slowed the decision on giving Huawei access to the UK’s 5G network again. Also, in 2019’s third quarter Huawei ships 66.7 million phones . Huawei has blamed US for practicing various cyber-attacks activities and threats to shatter its business. Huawei has already let go more than 600 US workers due to blacklisting. Despite the US trade ban, Huawei is planning to give universities $300 million annually .
The Latest numbers from the Federal Reserve shows that US GDP is slowing declining mainly due to tariff tensions. The latest evaluations from Strategy Analytics and Counterpoint Research arrive at a time when global smartphone shipments have declined for seven consecutive quarters, and phones have become engrossed in the US-China trade war.
Moreover, frame working the modulation for how the year has displayed for Huawei, the US Justice Department removed charge in January that included 23 counts significant to theft of intellectual property, interference of justice and fraud related to its stated evasion of US endorsement against Iran.
Henceforth, the bottom-line issue with Huawei has been regarding the concern about convenience with the Chinese government and despair that its equipment could be used to lookout on other countries and companies. This is the main reason why US banned companies from using Huawei networking appliances in 2012 and why the company was added to the US Department of Commerce’s Bureau of Industry and Security Entity List in May and it basically followed an executive order from President Donald Trump dramatically banning Huawei from US communications networks.