Huawei Gets Cut Off: The Phone Company That Couldn’t Call Home
The Tech giant from Shenzhen, China, Huawei has finally achieved the impossible. The company has become the black sheep of the tech world. It has also become more of a rouge entity, as it is under consideration to be banned from all American suppliers. Huawei has managed to stand out in the tech world, by being cut off from it.
This would have a major effect on Huawei’s global business operations. The restriction would deny Huawei less access to US technology. The move is part of a wider effect to counter China’s rise as a technological power. Also, it’s to raise a concern about China’s human rights violations. However, this move could also have severe consequences as it can escalate tensions between the US and China and have a wider effect on the tech industry and global supply.
Huawei’s relationship with the Chinese government
The reason Huawei is such a threat to the US is because of its close relationship with the Chinese government. In addition, its leverage in the telecommunications equipment market and close relationship with the Chinese government have raised questions about its potential to hack or spy on behalf of the government.
Nonetheless, The US government does not want to take any chances. Because of that it is committed to putting an end to Huawei’s influence over the tech world. The Biden regime has convinced both Japan and the Netherlands to restrict exports of advanced semiconductors to China. And to go another step further the US is even considering rejecting all licenses requested to supply the company.
What can we expect moving forward?
Huawei is not out of the game just yet. The company managed to spin off a massive amount of its smartphone business and offer lower bandwidth 4G phones under its own name. But that still didn’t help the fact that the company brand has been damaged by the US government’s campaign against it.
From what we’ve seen so far, we can make a guest of the kind of effect this will have on US companies. According to Bloomberg supply chain analysis, Huawei only represents less than 1% of revenue for Qualcomm, Intel, and AMD. So, it is not likely the company will take any massive hit over it.
At the end of the day, it’s bad to see a company with such high potential fall from grace. But this is what happens when you cross the US government. Look at the bright side at least we don’t have to worry about Data Breach like T-Mobile.
