US sanctions are tightening on Huawei, but until when?
Huawei, crown the gem Chinese technology industry, Is coming down from two economic blows from U.S. chip sanctions and a campaign aimed at cutting international markets.
But together Huawei expanding rapidly into new markets and the Chinese government is investing heavily in technological independence from the West, which may not last long.
The The US government has targeted Huawei for alleged espionage and links to the state, the company said 5G wireless equipment carries a security risk. The rise of Chinese companies is seen by many in the West as linked to the power of the Chinese government and its brand of techno-authoritarianism.
Huawei’s final economic report, published on Wednesday, shows the economic cost of the U.S. campaign. Revenue growth fell to 3.8% last year from 19% in 2019; international sales have fallen sharply, especially in Europe.
Sales of the company’s phones have been a huge success. When Samsung took second place in shipments around the world in 2019, Huawei was left out of the top five mobile phone manufacturers in late 2020, according to the research company Canalys.
“The U.S. has been successful in verifying Huawei’s overall growth, but it is doubtful that it will be crushed as a global technology power,” he says. Peter Cowhey, Dean of the UC San Diego School of Global Policy and Strategy and a former U.S. government official.
The US has banned Huawei network equipment from home 5G networks and has persuaded other countries, such as the UK, Canada and Australia, to impose similar restrictions. Last year, the U.S. also imposed export controls on Huawei’s supply of high-end chips and cutting-edge equipment for China manufacturing, effectively reducing Huawei’s ability to make high-end phones.
“The reduction in the supply of our phone business has had a huge impact and we have not been able to see a clear picture in the supply of our phones,” Huawei Vice President Ken Hu said at a press conference. the company’s headquarters in Shenzhen on Wednesday. “We believe this is a very unfair situation for Huawei, and it has caused us a lot of damage.”
Microchips are the heel of Chinese Achilles because it lacks the domestic ability to perform nanoscale characteristics found in the most advanced and powerful of these components. Like Chinese chipmakers Minimum wage producing chips for low-end products, including Internet of Things devices.