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Huawei ban may be delayed, but can the company survive without the U.S.? | TECH(feed)

Network World | Jun 11, 2019

First the Trump Administration banned business transactions between Huawei and U.S. companies. But now, the White House’s budget director has called for a two-year delay on the ban. If this ban does go into effect, how hard will Huawei be hit? In this episode of TECH(feed), Juliet discusses this new suggestion and discusses whether or not Huawei can survive without the U.S.

Copyright © 2019 IDG Communications, Inc.

Hey everyone welcome back to tech feed i’m juliet beauchamp. Another day, another huawei story. But i swear, there’s even more going on today than there was last week. Stick around.

So first the trump administration banned u-s companies from doing business with huawei. Immediately, many prominent tech companies in the united states cut ties with huawei. Then the commerce department gve huawei a slight reprieve and allowed it to work with tech companies through august 19th of this year. And now, the acting director of the office of management and budget is calling for a two year delay on the ban.

Originally, the huawei ban was intended to be enacted within one year. But now the budget chief is saying this ban would hurt u-s businesses too much, and everyone needs more time to sort out how they can operate without huawei. The idea is that over the course of the next three years, tech companies and telecom providers can distance themselves from huawei without too much disruption for consumers and headache for businesses.

I feel like i mention this every huawei video, but it’s important to remember that the u-s and china are in the midst of a trade war. Huawei is a chinese company, and the whole reason the u-s banned it in the first place is due to an alleged security risk. The u-s claims huawei can use its equipment for espionage purposes. So this ban may be used as a bargaining chip in ongoing trade talks between the u-s and china. But if it’s not a bargaining chip, and the u-s government is serious about the ban… can huawei survive without the united states?

In short, yes, huawei can very likely survive without the support of the united states. Very few telecom companies use its wireless equipment, and huawei hardware isn’t super popular in the the u-s. But if u-s allies follow suit, huawei could be hit very hard. Already the united states has petitioned its allies to not use huawei equipment when building 5-g networks. Some have agreed, but many more have not.

It may be too soon to tell how the conflict between the united states and huawei will play out. Google has already pushed back on the ban, saying that cutting huawei devices from android updates poses a security threat and leaves those devices vulnerable. It’s possible this ban will be short-lived and all for show if trade negotiations between the u-s and china are successful. No matter what happens, i’ll be sure to keep you updated.

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. It’s been great seeing some of your feedback as this huawei story unfolds, so keep letting me know your thoughts about the ban and how you think it’ll play out. And be sure to check out the links below for more on this story. See you next time.
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