Huawei banned by Trump a "double-edged sword"

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• Huawei banned by Trump a "double-edged sword"

US President Donald Trump's decision to effectively bar Chinese telecom companies from doing business with US companies will have an impact on both nations and the global technology sector, industry experts said. . Huawei and ZTE have been added to the "Entity List" since Friday and are preventing it from buying parts or technologies from US suppliers without government approval, and their equipment is considered a potential tool for Chinese espionage. "With this executive order, American component suppliers and Chinese suppliers would be affected, it is certainly a" double-edged sword, "said Mo Jia, a research analyst at Canalys, in LaComparación Middle East. He said that the hardware Huawei's 5G is certainly cheaper and the US could use other vendors' products, but its cost is often higher. It should be noted that the other two major players in this space, Ericsson and Nokia, are not US companies." At present, the relationship between Huawei and European countries is stable. However, it is possible that in the future, more countries will join the US prosecution. Australia has also banned Huawei's 5G equipment. But at this point, it is unlikely that another major European country will ban Huawei because its 5G solutions are cheaper and more competitive compared to other players," said Sukhdev Singh, vice president of Kantar AMRB, a provider of research and analytics services. market, said that US regulators and the US government still have the power to influence the decision of other countries with which they should partner and that this could have an impact on telecom operators around the world. He said that local technology adoption is becoming more mature and less dependent on US technology providers."It all depends on the belief of each government, and if the influence of governments is not there to ban Huawei, then it won't have a big impact on Huawei." "If the US and other countries ban Huawei, they will be constrained and have fewer players in the telecom space, which could hurt innovation and growth in the telecom sector," he said. . he declared

How important is Huawei in the 5G race?

Huawei has 283 global partners and 57 regional partners for 5G and plans to have one million base stations in the world by 2020. According to the online market intelligence platform IPlytics, the Chinese company leads the race in the number of technical contributions. 5G standard by a company. Huawei held 11,423 patents in 2018, followed by Ericsson with 10,351 and Nokia with 6,878 patents, the other top two makers of network equipment. With €15 billion invested annually in research and development, Huawei is in the top 5 strategic positions in the 5G race and is capable of mass-producing 5G chips, 5G mobile routers, and a CPE (Customer Equipment). -local), a home wireless router.

Apple, Intel and Qualcomm could be under pressure

If the trade war between China and the United States continues, Jia said it will surely have an impact on the global technology sector as well. The activities of Apple, Intel and Qualcomm could be affected in the future in China, both American. However, Chinese smartphone publishers also rely on Qualcomm chipset and if China bans or increases tax on Qualcomm, Chinese gamers will suffer. If the United States bans Huawei from buying components or software from US companies, it will surely have an impact on Huawei's global business and thus the industry as a whole, he said. According to industry reports, Huawei annually purchases more than €11 billion worth of goods and services from US companies. Jia said Huawei had intentionally stockpiled more components before the decree and that "in the short term, I think Huawei still has enough." However, if Huawei does not change the situation, the production of its 5G equipment would be affected, "he said. Sources suggest that Huawei has developed its own operating systems for computers and smartphones, in case those provided by Microsoft and Google Huawei subsidiary HiSilicon makes its own CPUs and GPUs for its smartphones.