The Chinese Tech Giant Huawei has lost billions of its users after the loss of Google has obliterated sales outside China.
As the ban from the United States Government on Huawei has now entered in the second year, the sales of company’s smartphones has been the hardest hit. Although sanctions were aimed at Huawei’s 5G equipment. The Chinese Tech giant company relies on smartphone sales at home to top up its balance sheet, fuelling the vast R&D investments it makes each year. Its share of China’s smartphone market—the world’s largest—has grown post-blacklist. The company is dominant.
Moreover Tech Giant Huawei knows full well that to recover any ground in its international consumer sales it needs to either restore Google or deliver on its promise of a home-grown alternative. The trade war between the United States and China is set to escalate as the Trump administration tightens restrictions on the supply of US technology and software to smartphone company Huawei.
Earlier, the United States extended the sanctions order on Huawei until May 2021, justifying the Trump administration’s threats to national security. The United States has accused Huawei of having close ties to the Chinese government and may use its spying equipment, after which Huawei was blacklisted in the United States following an executive order from President Donald Trump.
But so far the full ban has not been implemented, but a temporary license is issued every three months, allowing some US companies to work with Huawei.
John Neuffer, president of the Semiconductor Industry Association, which represents chip companies, said his group had concerns that the new ban would affect the global semiconductor supply chain and create uncertainty.