Huawei at the center of US-China tech war

The tech war between two of the world’s largest economies rages on, and right smack in the middle is Huawei.

Recently, the United States confirms that it is enforcing a new ban on all products from Huawei. This tech war has been raging on for years, and it has its roots when President Donald Trump assumed power.

The U.S. is putting a lot of pressure against the Chinese tech giant. Word around the tech community is that the country wants to eradicate its dependency on all Chinese-produced technologies.

Repercussions of the trade war

The trade war between China and the U.S. has hit many industries, not just the tech industry. Companies around the world struggle to look for alternative supply chains now that the U.S. issue massive tariffs against Chinese goods.

Even notable tech companies Apple and Qualcomm are experiencing a shortage of critical supplies. China provides not only affordable manufacturing costs, but it is also the bedrock of some critical supplies.

On Friday, the Trump administration made a decision to block all semiconductor shipments to Huawei. The company is widely considered as the world’s second-largest smartphone manufacturer. On top of that, the company also provides critical equipment and hardware to other tech companies around the world.

The U.S. government is also convincing its allies to shift their focus from Huawei towards other hardware manufacturers. Huawei is one of the world’s top manufacturers of 5G hardware and technologies. Many tech experts consider 5G as the next frontier, and the Chinese tech giant is positioning itself as a leader.

National concerns

The United States claims that the blockage against Huawei is just part of the country’s national security policy. The country claims that the company might leverage its position in the tech industry to spy on people and government. The company denies these allegations.

U.S. Commerce Secretary Wilbur Ross claims that the new policy aims to:

“Prevent U.S. technology from enabling malign activities contrary to U.S. national security and foreign policy interests.”

The Commerce department adds that it will still allow the shipment of silicon wafers that are already in production. However, it is giving the company only 120 days to complete the shipment before the permanent lockdown.

Aside from Huawei, the United States also add at least 114 of the company’s affiliates into the blacklist. While this is a big blow against the Chinese tech giant, global trade experts believe that it can find alternative suppliers. The country claims that all these measures are taken in order to protect national security.

Image courtesy of JHVEPhoto/Shutterstock

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