Huawei ban spreads worldwide

Daniel Fowler
May 25, 2019

United States president Donald Trump's administration believes Huawei's smartphones and network equipment can be used by China to spy on Americans - allegations the company has repeatedly denied.

Wi-Fi Alliance is fully complying with the recent U.S. Department of Commerce order without revoking Huawei Technologies membership.

"At present, Matsushita Group supplies normal products to Huawei". The "Huawei OS" is understood to be "far from ready" for the time being and is expected to become available next spring at the latest.

Smartphone shipments at Huawei, the world's second-largest smartphone maker by volume, could tumble between four per cent and 24 per cent in 2019 if the ban stays put, according to Fubon Research and Strategy Analytics.

Investors and industry expects have been watching closely to see how US technology companies alter their relationships with Huawei to comply with the directive and what impact those changes will have on both the Chinese company and its partners. Google, focused on internet-related services and products, cut its business deals with Huawei that involve the transfer of hardware and software.

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The company showed off how those ads will look like at its Facebook Marketing Summit 2019, held in the Netherlands this week. WhatsApp's parent company, Facebook , has confirmed that the messaging app would start serving advertisements in 2020.

The company has been working on the system under the code name "Project Z" as an insurance policy in case it lost access to American technology like Android, which powers Huawei's popular smartphones, and hopes to release it later this year. A report by the Wall Street Journal claims that Huawei has filed a trademark for "Hongmeng" with the Intellectual Property Administration in China. The market is effectively a duopoly, with Android running on 87% of smartphones sold in the first quarter, and Apple's iOS running on nearly all of the rest, according to market research firm Canalys.

Supplier Lumentum has also said it's stopped shipping parts to Huawei, according to Reuters. A string of Japanese carriers, including NTT Docomo, said they were also considering delaying the launch of Huawei's new smartphones.

"It goes against the values of the worldwide business community, cuts off the global supply chain and disrupts fair competition in the market", he says. In the ongoing US-China trade war, it was a big step which has severe outcomes.

"The negative impact of tariffs is clear and hurting the competitiveness of American companies in China", the American Chamber of Commerce in China and AmCham Shanghai said in announcing the results of a survey of almost 250 companies conducted May 16-20. Earlier this month, President Trump placed another round of tariffs on $200 billion of Chinese goods.

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