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U.S. bans Huawei business | TECH(feed)

Computerworld | May 20, 2019

Huawei has been under fire from the U.S. government for some time now. But a new move by the Trump administration targets Huawei and other companies accused of “posing an unacceptable risk” and bans Huawei from doing business in the U.S. On this episode of TECH(feed), Juliet dives into this topic and explains what this ban could mean for Huawei users.

Copyright © 2019 IDG Communications, Inc.

Hey everyone welcome back to tech feed i’m juliet beauchamp. Today i’m diving into the ongoing tech war between the united states and china. I’m breaking down new u-s government restrictions against chinese tech and what that could mean for you. Stick around.

Okay--i know i haven’t talked about huawei’s ongoing drama with the united states in awhile, but that doesn’t mean it’s died down. Actually, i would say it’s getting bigger by the second. Let’s start there.

So last week the president trump issued an executive order barring business quote “posing an unacceptable risk.” while that doesn’t single out huawei, it’s long been documented that the u-s has pushed back on huawei doing business in the country. There’s been speculation that huawei devices--in particular, those used in build 5-g networks--pose a security risk because huawei allegedly may report data back to the chinese government. This is purely speculation though, and huawei has denied these claims numerous times.

So yeah, this transaction ban doesn’t name huawei, but it’s widely accepted that the chinese telecom company is the target of the executive order. Now let’s talk some of the immediate fallout from this ban.

American companies are now barred from doing business with huawei. That means chip makers like qualcomm, intel and broadcom may no longer sell parts to huawei. A particularly sticky situation involves google--huawei phones operate on the android platform. And huawei does a lot of business in the united states--it spent 11 billion dollars last year buying elements for its phone from american companies.

It’s estimated huawei makes about three quarters of its smartphone chips. So while its chip business may be hurting, let’s talk about how google is responding. Huawei uses google’s android o-s for its phones--and how can you have a phone without an operating system? In response to the ban, google has cut some business with huawei. If you have a huawei phone, you’ll still be able to use it. But huawei has lost access to future android updates. Future huawei phones that use android will not have access to google apps like youtube, gmail or the google play store. But that’s assuming huawei makes more phones while this ban is in effect.

Trump’s executive order poses a serious risk to huawei’s business and its supply chain. But it’s possible this ban may be used as a bargaining chip in the ongoing trade war between the u-s and china. So if you’re a huawei smartphone user, there’s no need to panic…. Yet. It’s possible this ban will be short lived if next month’s meeting between the u-s and china settles the trade dispute. And if not… well, it may be time to switch phones.

Thanks for watching this episode of tech feed. If you liked this video be sure to give it a thumbs up and subscribe to our channel. And if you’re a huawei user and could be affected by this ban, let me know how you feel in the comments. See you next time.
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