The US restricts entry to the country for employees of Chinese IT companies. The UK pulled out of Huawei’s 5G rollout at the last minute. Here’s how the trade war continues to put pressure on Huawei and what the company’s prospects are.
What happened? What are the other restrictions?
US Secretary of State Mike Pompeo announced on July 15 about the restriction of the visa regime for some employees of Chinese IT companies. This primarily applies to employees of Huawei and other organizations supported by the Chinese government. The politician called the workers of such organizations “Trojan horses of intelligence”.
In addition to state security, the pretext for the new sanctions was accusations of Huawei in violation of human rights and aiding censorship by the Chinese Communist Party. Pompeo also believes that the new measures will serve as an example for other technology companies that work and plan to work with the United States.
“Telecommunications companies all over the world should know: if they cooperate with Huawei, then they cooperate with a human rights violator,” the politician said.
What about Britain?
Until recently, the UK remained Huawei’s main ally in the conflict with the Western world and had nothing against the Chinese building 5G on its territory. However, this informal union has recently disintegrated. UK Minister of Digital Technology Oliver Dowden said on July 14 that the country is withdrawing Huawei’s services. Recommended by the National Cybersecurity Center.
By the end of 2020, all local operators will have to stop purchasing Chinese equipment. Until 2027, telecoms are required to remove all Huawei components from the infrastructure. This is a very dramatic turnaround considering 5G has already started to appear in some regions of the UK at the beginning of the year. Based on, of course, Huawei hardware.
However, not only the Chinese will suffer losses from this adventure. According to Dowden himself, the abandonment of Huawei will slow down the development of 5G in the country for about three years and bring the economy a loss of $ 2.5 billion.
“This decision was not easy for us, but it is true for the UK telecommunications companies and the national security of the economy both now and in the future,” the politician said.
American media believe that Britain took this step out of fear of US sanctions. Donald Trump broke with Huawei himself and is now making European countries do the same with threats.
And what about other European countries?
It is long to describe the attitude towards Huawei in each region. In short, the majority doubts, but one way or another they are inclined either towards a ban or towards an amnesty. The United States, of course, does its best to resolve this dilemma towards a ban.
For example, Poland has already restricted Huawei’s actions in the country, while Germany has strong doubts. Which is quite reasonable on the part of the Germans, because the Celestial Empire has threatened to undermine the sales of Mercedes and BMW in China. At the same time, the United States is putting political pressure on Germany.
Shortly before limiting the visa regime for some Chinese, Donald Trump announced the transfer of American troops from Germany to Poland.
“I’ll return half home, and the rest will go to the places that deserve it,” said the US President. Even earlier, he literally blackmailed Germany by the fact that in the event of non-refusal from Huawei, Washington would limit the exchange of intelligence with Berlin. Both, from Trump’s side, looks like a redistribution of his favorites in Europe.
In addition to Poland, the Czech Republic, Denmark, Latvia, Romania and Sweden have so far excommunicated Huawei from 5G. And this is only in Europe. Washington pulled strings in other regions as well. Some operators in India (Jio), Australia (Telstra), South Korea (SK and KT) and Japan (NTT) have abandoned the equipment of the Chinese tech giant.