It is almost two years since the blockade against Huawei and other companies of Chinese origin due to what, from the government, consider that these companies use their technology to carry out espionage. Something that Huawei has categorically denied repeatedly.
The situation has resulted in an impediment for various US companies to be able to do business with Chinese technologies, while for the companies their businesses have been significantly affected.
They make formal what everyone feared
Huawei is the company that has most resented Washington’s decisions, a problem that it will have to continue to face after the resolution released on Monday.
The foregoing because the Federal Communications Commission (FCC) announced that It formally considers Huawei and ZTE a « threat to national security. » Therefore, he pointed out that it is determined to block the permanent use of any equipment or technology that these companies or their subsidiaries in communication networks develop in the United States or in the country’s 5G networks.
« We cannot treat Huawei and ZTE as anything less than a threat to our collective security, » said Brendan Carr, FCC commissioner. Communist China intends to monitor people within our borders and engage in large-scale industrial espionage. Nothing less than banning subsidized equipment from Huawei and ZTE our networks could address this serious threat to national security. After all, Chinese law does not significantly restrict the communist regime given its authoritarian nature, « he added.
A hard blow for the Chinese technology because, although in some way the label is ‘symbolic’ because the blockade has been recurring since last year, preventing US companies from acquiring their equipment, it is still a negative impact because it somehow closes even more a door that was almost closed.
The two strongest arms, those affected
For many analysts, the blockade is a side effect of a political dispute in the race for the United States to lead the development of 5G networks, a dispute in which China has ample advantage with Huawei.
The firm is the world’s largest player in the construction of infrastructure networks, especially those related to this technology, it has an advantage over Nordic companies, Nokia and Ericsson further away are ZTE and Samsung.
The fight motivated Washington for two years to try to convince its allies not to use Huawei technology to renew its 5G networks, at least not in what is the brain of the infrastructure of the new telecommunications system; Although there are countries that have yielded to pressure, others have resisted and entered into commercial relations with Chinese technology. However, the latest resolution could put some of the land gained at risk.
In addition to this, and although the blockade is presumably not directly related to your smartphones and other mobile devices, the reality is that your devices have been affected; from the launch of the Mate 30, when its marketing strategy was diminished by commercial disputes, to the impediment that Huawei smartphones cannot natively integrate the apps and services of Google like Gmail, YouTube or Google Maps.
We are talking about the company’s two main business divisions, an example of which is that in 2019 it reported revenues of more than 858.8830 billion yuan, or about 121.55 billion dollars; of which telecommunications accounted for 41 thousand 990 million dollars, and consumer technology (including smartphones) some 66 thousand 140 million dollars, according to data projected in Statista.
While Huawei has invested heavily in innovation and the development of an entire ecosystem of apps with AppGallery, It must still work so that the consumer recognizes its technological offer in this matter and agrees to move platforms.
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