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Huawei ban: collateral damages

Huawei and Oppo have proven themselves in the market by manufacturing a big range of high-quality smartphones, but if you are using this brands or wanting to purchase it, you should definitely have a second thought about it.

The trade war between USA and China has known a serious escalation, which radiations has affected the value and the price of several Chinese products in Morocco and around the world, for Trump has ordered GOOGLE to blacklist several IT companies such as OPPO and HUAWEI, forbidden any ties like selling GOOGLE services or updates in addition to the usage of the public, open source version of Android.

Reasons

This stoppage was justified as a precaution in order to secure the national security regarding the info of its users and the location of the server. Nevertheless, many economic experts agreed that this ban is only an instrument in this economic war in the goal of bringing back the Chinese to the negotiation tables.

Outcomes

Huawei ban will bring a ‘sea change’ to global supply chains in addition to a tremendous number of users: Researcher Cliff Tan of MUFG Bank says the U.S. is targeting one or two specific firms such as Huawei, and if that leads to retaliation from China, it could be a huge issue.

Huawei’s founder punchs back

In the other hand, the founder of Huawei has said the US “underestimates” the Chinese telecom maker’s strength and that conflict with the US is inevitable in the quest to stand on top of the world. Ren Zhengfei also added that his company was fully prepared to face US bans on key components following new trade restrictions caused by Donald Trump’s declaration of a national economic emergency last week.

Now what?

For the next 90 days, the US Department of Commerce will allow Huawei to purchase the US made goods in order to maintain existing networks and provide software updates to existing Huawei users. Ren dismissed the gesture from the department, saying: “The US 90-day temporary license does not have much impact on us. We are ready”.

Owners of Huawei, stay sharp

The battle over Huawei has added to tensions in a trade war that has escalated between the world’s top two economies, with both sides exchanging steep increases in tariffs as negotiations have faltered. Buyers and owners of Huawei will only observe what it can be the end of this company or the beginning of a new chapter full of retaliation and challenging.