What did Huawei ever do to land into troubled water with the US? The tech firm had endured a shaky business relationship with the US on grounds of national security. President Trump finally called it quit by restricting Huawei from business ties with US tech companies. The most recent escalation is the suspension of Huawei smartphones in Asia and Europe.
The ban on the Chinese firm means that the tech firm can no longer buy or source for components without a license from the US government. Even though this has no effect on existing devices, the decision threatens Huawei’s bid from being a leader in building the fifth generation networks for the US and other western countries.
This decision is halting the launch of Huawei’s new smartphones. Vodafone said on Wednesday that it paused pre-orders for the Huawei Mate(5G) smartphone in the UK. The EE in the UK is also delaying pre-order of the Mate 20x in a preview of its 5G network.
Top mobile operators in Japan are also following the steps against a launch. The Huawei P30 Lite was scheduled to launch in the country later in the month, but has been halted due to the US restrictions.
Although this appears to be a setback for the tech firm, Huawei believes that the challenges are temporary as the firm is soon to bounce back. “This is a temporary measure while uncertainty exists regarding new Huawei 5G devices,” a spokesperson from the company said.
Other firms which are also following the steps due the restrictions include NTT Docomo, KDDIF and SoftBank Corp. They are all delaying the release of the new Huawei phone, except there is an approved license from the US government.
The suspension of orders has caused a strain on the tech firm and is a very valid evidence and escalation of the US-China trade war. The US has consistently accused Huawei of having ties with the Chinese government, which the tech firm has voraciously denied.
Huawei’s dream to become No.1 in tech may have been shattered by the restriction orders from the US government. Currently, the tech firm holds the second position behind Samsung after it defeated Apple last year. Just few months down the line, the US government is frustrating the tech firm. What did they even do to fall into troubled water with President Trump? Up till this moment, there’s no evidence to prove that Huawei may be spying on the US with their tech. Every decision is simply based on speculations.
Given the situation between the US government and Huawei, all sales and launch of new Huawei mobile phones are on hold until the ban is lifted or when the tension simmers down. The mobile operators are under some pressure by the US government to not launch the new phones manufactured by the company, making the products less attractive to international consumers.
“We value our close relationships with our partners, but recognise the pressure some of them are under, as a result of politically motivated decisions. We are confident that this regrettable situation can be resolved and our priority remains to continue to deliver world-class technology and products to our customers around the world,” a spokesperson from Huawei told the CNN.