Huawei: A Company in the Trade War

Recent, there are many news around Huawei.

11/23 Washington Asks Allies to Drop Huawei [1]
11/28 New Zealand blocks Huawei imports over ’significant security risk’ [2]
12/1 China, MengWanzhou and Canada — how Huawei CFO’s arrest is playing out behind the scenes [3]
12/7 BT removing Huawei equipment from parts of 4G network [4]
12/8 Japan set to say no to Huawei tech [5]

The Sydney Morning Herald said, this could be an operation arranged by Five Eyes. [6] Five Eyes is anintelligence alliance including Australia, Canada, New Zealand, the UnitedKingdom and the United States. There is a clear story line for their actions.   

United States has been a long advocator that stop Huawei equipment for the security reasons. OnAug, President Trump signed the National Defense Authorization Act 2019. InSec. 889, it said

“Prohibition oncertain telecommunications and video surveillance services or equipment” [7]

The term “certain telecommunications equipment” means telecommunications equipment produced by Huawei or ZTE. The latter one is another Chinese telecommunication company which was just been punished by U.S. government several months ago. Huawei has already been the target of United States government for a long time. However, United States didn’t show any evidence except the concern of national security issue.

The most dramatic part is Huawei CFO, Meng Wanzhou, was caught by Canada, when she flew to Mexico via Vancouver International Airport. Canada said they followed the request from the United States based on the rule of law. However, Canada is paying a heavy price for having being involved in this Huawei case. Two Canadian were soon arrested in China since some law violations. Canada and China government both said there was no connection between these two cases. But, there is an opinion that Canada is being used politically and being stuck between the United States and China in this trade war.

Huawei has a leading position in 5G competition. Huawei announced they have got 25 5G contracts till this year. [8] Its revenue for 2018 is except to jump close to 10% from last year’s $92 billion. Half of its sales are from the internal market. UnitedStates has the strong willingness to suppress China’s ambition in the high-tech industry. Any mistake will be a disaster for Huawei during the trade war.

[1] Washington AsksAllies to Drop Huawei
[2] New Zealand blocks Huawei imports over ‘significant security risk’ 
[3] EXCLUSIVE: China, Meng Wanzhou and Canada — how Huawei CFO’s arrest is playing out behind the scenes
[4] BTremoving Huawei equipment from parts of 4G network
[5] Japan set to say no to Huawei tech
[6] How the ‘FiveEyes’ cooked up the campaign to kill Huawei
[7] NDAA2019
[8] Huawei announces over 25 5G contracts, revenue jump