President Trump blacklisted the tech giant Huawei which prompted Google to halt its cooperation with the Chinese telecommunications company.
The US-based multinational technology company, Google, has cancelled some aspects of its business cooperation with the Chinese, multinational telecommunications company Huawei, following the Trump Administration’s decision to blacklist Huawei across the globe in retaliation to the breakdown of the US-China trade talks, in which China backtracked on many aspects of its commitments within the trade deal, but moreover, after growing concerns regarding Huawei’s relationship with the Communist Government of China. The business cooperation between Google and Huawei that has been put on hold by Google involves the exchange of software, hardware and technical services excluding services that are accessible through open source licensing.
Google’s decision may cripple Huawei’s multinational telecommunications business because it will essentially be stripped of crucial updates of the Google Android system. Gmail, YouTube applications and the Google Play Store are a few examples of Android’s mainstream services that new Huawei devices will be banned from using.
On the 16th of May President Trump’s Government decided to put Huawei on a trade blacklist, putting into immediate effect stringent constraints and regulations that potentially could axe any possible business exchange between the Chinese tech giant and the US.
However, the US Commerce Department has contemplated the issuance of a transitory license which should “prevent the interruption of existing network operations and equipment.”
Click here to read the full article from The Telegraph.
The extent of the damage that the Trump Administration’s blacklisting could have on Huawei’s global business and position in the telecommunication industry is still very much cloudy as assessments are made regarding its global supply chain.
“The share-price falls follow U.S. corporations freezing the supply of critical software and components to China’s largest technology company, in order to comply with White House orders.”
“Chipmakers including Intel Corp., Qualcomm Inc., Xilinx Inc. and Broadcom Inc. have told their employees they will not supply Huawei till further notice, according to people familiar with their actions. And Alphabet Inc.’s Google cut off the supply of hardware and some software services to the Chinese giant, another person familiar said, asking not to be identified discussing private matters.”
“If fully implemented, the Trump administration action could have ripple effects across the global semiconductor industry. Intel is the main supplier of server chips to the Chinese company, Qualcomm provides it with processors and modems for many of its smartphones, Xilinx sells programmable chips used in networking and Broadcom is a supplier of switching chips, another key component in some types of networking machinery. Representatives for the chipmakers declined to comment.”
Taken from Bloomberg.com.
On the other hand, Huawei could carry on having admission to the AOSP (Android Open Source Project), which is the open source licensed version of Android’s operating system. Reports by Google indicate that there are roughly 2.5 billion Android devices that are active across the planet.
‘For Huawei users’ questions regarding our steps to comply w/ the recent US government actions: We assure you while we are complying with all US gov’t requirements, services like Google Play & security from Google Play Protect will keep functioning on your existing Huawei device.’
Nevertheless, Huawei has responded by informing that during the past couple of years it has been creating and cultivating its own unique technology in the event that Android axes its cooperation with the tech giant. According to Huawei, various elements of its new technology have since been implemented in China.
Gmail, YouTube, Google Play Store and Chrome, all these trending Google applications, could be stripped from new and upcoming Huawei devices as they do not come under the open source licensing.
Huawei’s Chief Executive Officer of its Consumer Business Group, Mr. Chengdong Yu, or Richard Yu, said:
“We have prepared our own operating system. Should it ever happen that we can no longer use these systems, we would be prepared.”
Click here to read the full report from businessinsider.com.
On the 19th of May, Steven Hilton from Fox News interviewed President Trump regarding the US-China trade war, in which President Trump said that the increase in tariffs is far more beneficial to the US when compared to the consequences that the tariff hikes are having on the Chinese economy and business.
“Two days ago I made it 25 percent, so China is paying 250 billion dollars at 25 percent, so we’re taking in billions of dollars. Now, from China’s standpoint it’s not good because many of these companies that are paying the tariff are moving to Vietnam and other places in Asia. A lot of American companies now could come out and build plants and make those products in the United States. A lot of companies move very fast in Asia, and a lot of these companies that are in China are now moving to all Asian countries where they don’t have the tariffs. We have really smart people in this country, they’ll be buying from different locations. Since I’ve been President we’ve made almost 10 trillion dollars in wealth and China has lost 10 trillion dollars in wealth. I like President Xi very much, but he’s for China and I’m for us so there’s a little bit of a conflict.”
To watch the full interview, click here.
Google’s decision to axe its business cooperation with Huawei, comes after a recent report that raised security concerns regarding the Chinese Government’s involvement with the tech company and urged for Huawei to be blocked from the installation of the 5G technology in Britain.
‘The British Government’s relationship with Huawei dates back almost twenty years. I recall that the security concerns that were raised at the start of the relationship were then dismissed by the UK Government. Consequently, the argument that is presented now is that Huawei is so deeply embedded in the UK’s telecommunications sector that the extension of the relationship to 5G will not make a great deal of difference. We have learned how to live with and manage the risk and can continue to do so. However, the introduction of 5G networks signals a very large technological step change which will have far-reaching implications for the UK’s national security and almost every aspect of the country’s civic life.’
Taken from the HJS (Henry Jackson Society), May 2019 report.
In April 2019, following charged talks within the NSC (National Security Council), regarding Prime Minister Theresa May’s decision to allow Huawei to be the provider of the 5G technology equipment in Britain, the NSC came to the conclusion that the decision needed to be reversed as Huawei poses too many security risks. Sir Richard Dearlove, former head of the British Secret Intelligence Service, and Member of Parliament Julian Lewis, the Chair of the Defence Select Committee, both raise their concerns with the threat that Huawei poses to the integrity of the UK’s national security.
(Dearlove) “I very much hope there is time for the UK Government, and the probability as I write of a new Prime Minister, to reconsider the Huawei decision. Furthermore, a post-Brexit government must not worry about giving offence to China by going back on the decision. If Australia can black ball Huawei as its 5G provider the UK can certainly do so the same without undue concern about the consequences.”
(Lewis) “If we make the wrong decision about allowing hostile agencies access to our critical national infrastructure, history will judge us harshly. This authoritative and alarming Report should help us to reach the right conclusion about companies operating under the aegis of the Communist Chinese state.”
Taken from henryjacksonsociety.org.
Despite these accusations, Huawei has consistently rejected any involvement with the Chinese Government, with the majority of its shareholders being the Huawei employees.
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