Why USA Banned Huwawei – Reasoning Case Study and Impacts
I was aware of this sanction since 2018 because at that time Chinese social media was already sharing their photos and videos destroying iPhone and there was a whole campaign running against US-made mobile phones.
I would like to share a fun fact before we jump into dirt of “Why USA banned Huawei mobiles phones”.
“Chinese companies offer bonuses to employees who buy Huawei Phones instead of IPhone”
Back in 2018, when Huawei VS iPhone VS USA war escalated, some companies in China even fired their employees for keeping iPhone and now in 2019 water has already boiled enough and resulted in Huawei being washed out of the scene but is Huawei has really been totally flushed by the US? No! It’s not, let’s find out why…
So, what has exactly happened? And Why Google and Other American Companies have boycotted Huawei? There are many rumors that are being discussed on social media. US government has given a statement saying Huawei is being banned in USA because they share personal data of US and UK based customers to their Government and security agencies which poses a great threat to their citizens. Well played by white government of USA but this is a WHITE LIE.
Actually, Huawei has been expanding their business rapidly. Every year Huawei’s net worth increases by 15% which means that it can easily washout American companies in coming years so US Government had to take some bold actions to stop Huawei’s progress.
Some groups of people also believe that Huawei was banned because they were about to launch 5G technology before US companies and if it would have happened, American companies would have got far behind in AI and modern technology.
How These Sanctions will Impact Huawei?
- Google has stopped all of its services with Huawei that are not open source; for example, play store, hangout and similar application will no longer functions on new Huawei mobile phones.
- All American Companies are not officially forbidden by American government to stop trading with Huawei. It includes hardware manufacturing companies too. For example, there is an American company named “corning” that provides Huawei with Gorilla glass. P30’s gorilla glass was also prepared by this company. Corning has also announced any sort of trade with Huawei.
- Huawei will have to rely on Chinese companies for hardware products too.
Huawei’s Possible Strategy?
You should keep one thing in mind that Huawei already knew this fishy move by US companies to bring its worth down and that is the reason why they have had been preparing for this day since first day of this trade war. According to one of Huawei executives, they have enough stock of America products stored that could help they manufacture many more new phones but obviously this stock will have to end at some stage. Huawei will not suffer much for hardware sanctions as chines companies are talented enough to produce their own hardware but there will be a huge impact on the software updates by Google.
You should also know that Huawei has had been preparing their own android like software for years and it is believed that these sanctions by US GOVT will not fire up the production of that mystery software that will complete Android in future. Huawei not only focused on building an android like software but they also developed a paly store like app store that is yet to be revealed for common public.
- Huawei’s net worth is more than $8.4 Billion which means that Huawei have got enough capital and investment to find alternatives of banned hardware and software equipment.
- Such foolish step but US Govt will give rise to self-manufacturing power of chine and Chinese companies will end up building their own software and hardware and at the end of the day it will result in nothing but more competition in the market.