World’s second largest smartphone manufacturer Huawei has been suspended to trade with US, what adverse effects could it have?
World’s one of the biggest Tech giants, Huawei has been axed by the US to shut down all its trade with the country off recently. The China-based company has been pioneering the tech industry for a long time with its wide range of products including their major product – smartphones.
The world has shaken up due to the harsh ban on technology trade levied by the US Commerce Department. Actually, they have put Huawei’s name on the Entity List which means the Chinese giant will not be able to buy technology from US based companies without the US government approval.
This in turn has led US companies like Google, ARM, Microsoft cutting off Huawei from accessing their technologies. Well, a lot of things have happened till date, and to make it easier to understand, here’s a complete overview of this major news:
Donald Trump government bans Huawei from trading with the US companies
May 15: The US President Donald Trump signed an executive order that enforces the ban of the Chinese Tech giant Huawei from the United States of America.
“The executive order prohibits transactions that involve information and communications technology or services designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary whenever the secretary of commerce determines that a transaction would pose a threat to national security,” said the US Department of Commerce.
The US-China Trade war had already begun but this is a major blow that will have adverse affect for either of the countries. It was previously thought by US that Chinese smartphone makers especially Huawei tries to steal data and use it for Chinese intelligence, so the mental war had already begun earlier which got a climax at the end.
Google puts a restriction on Huawei’s Android License
May 19: Due to the order, Google had to restrict Huawei’s Android License which means, the smartphone maker cannot officially use Google’s Android OS on its own smartphones and neither will any of their future smartphones will receive future updates and security patches.
Well, Huawei can only use the open source version of Android (AOSP) in its future phones and also the company will lose its access to pre-install most of the Google apps including YouTube and not even use the important Play Store app.
If you are a Huawei smartphone or Honor smartphone user, you need not have to worry because this will take place for the later smartphones, up till Honor 20 series your smartphone will have access to all the latest Google apps.
US grants Huawei a temporary 90 day license
May 20: The US Department of Commerce grants Huawei a temporary license to continue operating its networks as well as other devices. This also means they can work with Google for the span of 90 days.
ARM cuts off its ties with Huawei, Microsoft removes Huawei Laptops from its Store, Google removes Mate 20 Pro from Android Q Beta Program
May 22: On this day a lot things happened honestly, firstly the UK based Chip designing giant ARM cuts off its business with Huawei and all its associate companies like Honor.
Now, this means Huawei’s own HiSilicon chips cannot use ARM’s chipset designs, that can be a huge setback for the company as most of its devices rely on its own manufactured chips which in turn rely on ARM’s chip designs.
Microsoft also joined the party of banning Huawei, well, this time they have removed all the Huawei laptops from their own Microsoft Store. Though they haven’t yet banned Huawei from using the Windows OS on their laptops but it may happen due to the current bitter situation.
Google too made sure that the newly released flagship smartphone by the company, the Mate 20 Pro has its access to the Android Q Beta Program get cancelled.
Major Mobile Networks in both Europe and Asia starts suspending orders for Huawei smartphones
May 23: Another blow to the company as the major telecom operators from Europe and Asia starts to suspend orders for Huawei’s smartphones.
- Vodafone has suspended pre-orders for the 5G version of Mate 20X,
- EE, another UK carrier prevents from ordering Huawei smartphones,
- NTT Docomo in Japan said that it will no longer accept pre-orders for the Huawei P30 Lite,
- Other Japanese telecom operators including KDDI and Softbank Corp. delays the availability of Huawei smartphones
Goldman Sachs predicts Cupertino giant Apple could suffer big loses if China retaliates
May 24: Today, Goldman Sachs analysts have predicted if the situation gets worse and if China retaliates the sale of iPhones in the country due to the inter-country trade war, then it could pose some great loses for the Cupertino Giant.
Apple could suffer a huge loss of about 29% of its profits if China bans the sale of iPhones in the country in the answer of Huawei’s trade ban with the US as China alone accounts for 17% of Apple’s sales.
No more microSD card usage on future Huawei devices
May 24: Huawei was the member of the SD Association that handles the manufacturers and also encourages the use of SD cards as well as microSD in the devices. As Huawei has lost ARM license, so the SD Association has cut ties with the Chinese manufacturer preventing them from using MicroSD Cards
China plays a huge role in manufacturing tech products worldwide, most of the US Companies like Intel, AMD, NVIDIA, Apple and others depend on China for manufacturing most of their tech-based products.
“If we made a deal, I could imagine Huawei being possibly included in some form or some part of it.” “You look at what [Huawei has] done from a security standpoint, a military standpoint. Very dangerous,”
Donald Trump, President of USA via BBC
Gradually the US trade ban with Huawei has led major US companies like Google, Microsoft, Intel, Qualcomm, ARM, and other telecom operators in Europe and Asia to cut off all its trade with the Tech giant.
Now, if a big trade war begins and China shuts down all such manufacturing units then, it could affect the whole world’s trade balance.
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