US Ban on Huawei; Who is Going to Lose?

The world news revolves around the US-China trade war and the US ban on Huawei will surely stir a massive debate and impact not only the tech giants – US and China – but also put up massive turmoil worldwide.

Huawei, one of the biggest mobile manufacturers after Samsung has an unavoidable connection between US software and chip provider companies. The trade between Huawei and companies such as Google, Apple, Qualcomm, and Intell was a massive profit for US companies. Last year, Huawei had spent around $70 billion to buy hardware parts as well as software. Trump’s ban on Huawei will be a huge loss for the companies since they cannot help but cancel the trade with Huawei.

us banned huaweiOn the one hand, Huawei’s loss can be considered as the loss of Google services, the software provided by Apple and the hardware from Intel and Qualcomm. On the other hand, it is not sure how much loss it will bring to China’s telecom mammoth since the lion’s part of Huawei users is in China. The Chinese government has already banned Google services in the country.

In the core, the issue is going to impact 5G. China is racing ahead of itself and the whole globe will be looking to China’s fastest network. It will be interesting to see how western tech companies looking at it. Even though it will be gradual, China has the capacity to bring hardware products.

The major impact will be on the economic system for the two tech giants – US and China – is done with the trades. The ban has shocked major European companies and followed US path. But, Huawei is one of the major cellular providers in Europe and it will affect most of the EU technological companies. The fear is born out of the chance that Google will soon end trade terms with Huawei.