A new level of trade war between the United States and the People’s Republic of China. The largest Chinese manufacturer of mobile devices, Huawei is under US sanctions. The beginning of a global process that will change the whole world trade.
On May 19, the US Department of Commerce placed Huawei into the black list of foreign companies. This means a ban on trading US firms with the largest Chinese manufacturer of mobile devices. Washington’s explanations include 13 reasons for such measures: financial fraud, industrial espionage, violation of sanctions against Iran and other crimes.
The first company to respond to the order from above was Google, which immediately led to the loss of Android system updates on Chinese smartphones. American authorities expect that Chinese smartphones will be non-competitiveness outside the PRC. Leading manufacturers of processors, chips and single-chip platforms, such as Intel, Qualcomm and Broadcom, supported Google decision.
Huawei representatives make statements the company has been preparing for such a turn of events for a long time. It is known hat HiSilicon, a subsidiary of Huawei Technologies, has been developing microchips in recent years and that in Chinese high-end smartphones they are already in use. These are preventive measures in case Huawei could not buy similar microcircuits in the United States one day.
“We have prepared our own operating system. If it ever happens that we can no longer use these systems, we will be ready. This is our plan B. But, of course, we prefer to work with the ecosystems of Google and Microsoft,” said Huawei top manager Richard Y. in an interview with WELT in March.
The trade war between the United States and the People’s Republic of China began 15 years ago when American telecommunications company Cisco accused Huawei of technology theft and patent infringement. Huawei pleading guilty, however, new claims were not long in coming.
Therefore, the decision of the US government on Huawei was not unexpected.