Yet another blow to the Chinese company as a result of the trade war.
Following the recent report, starting today after Google announced that it’s ceasing some business with Huawei—Other chip makers like Intel, Qualcomm, and Broadcom join the line and are stopping component supplies to the Chinese tech giant until further notice. According to Bloomberg.
The ban by Google which shows that Huawei can’t use certain parts of Android, including Google Play services, Google Maps, and Gmail. But, it can still use open part of Android – aka Android Open Source Project (AOSP) – and make its phones work.
The effective trade ban could seriously damage Huawei’s ability to do business. The company depends on Intel chips both for its servers as well as PCs like the MateBook X Pro. Broadcom and Xilinx supply chips for its networking business. And while Huawei makes its own processors for many of its phones, it may still need Qualcomm for some chips—Now it has to source other components from non-US companies to keep making devices. The company’s CFO Ren Zhengfei told Japanese media last week that it will be fine even if the US companies don’t supply chips to Huawei and also added on their Twitter page ”Full steam ahead: A U.S. ban on sales of electronic components to Huawei will not stop the tech giant from rolling out 5G mobile networks in Europe.
Huawei has reportedly been preparing for a possibility like this by stockpiling components and designing its own chips. It’s betting that an end to the US-China trade war will come soon enough to avert catastrophe. However, it might only have enough supply for a few months. If the trade war doesn’t end soon or doesn’t lead to a thaw in US relations, Huawei may be forced to either find alternatives or lose important parts of its business. China won’t like that — Huawei is one of the country’s shining beacons, and a decline on its part could have far-reaching implications for the Chinese economy.
With all effort pointing from US government to shove the Chinese company Huawei aside, which has been on for a long time. Last year, the company was stopped unexpectedly from entering into the US phone market—However, this current hostile trade dispute is between the Trump administration and the Chinese government, with the U.S administration trying to force a renegotiation of the trading relationship between the two and clearly it seems is not heading anywhere good so far.