The Trump administration's tough decision will be beneficial or leave long-lasting consequences for both US and Chinese companies.
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Just last week, President Trump officially signed a decree banning technology companies from the country from cooperating with Huawei due to national security concerns. Just a few days later, the decree began to take effect when a series of software and hardware giants such as Google, Qualcomm, and Intel were simultaneously "out of play" with Huawei.
According to the The VergeIf the ordinance goes on and more companies stop cooperating with Huawei, the long-term impact on Huawei, users or distributors will certainly be serious, even if it can have a big impact on the entire industry. Behind this story there are countless questions of users, analysts regarding the fate of Huawei and the underlying cause of the ban. However, here are the most popular questions.
1. If you own a Huawei smartphone, how will everything be?
Google claims that Google Play services and its applications and services will continue to operate on existing or storage Huawei devices. Therefore, Huawei smartphone users need not worry. However, whether Huawei smartphone continues to receive the latest Android Q updates is not sure.
According to the Reuters, Huawei will lose the ability to receive the latest updates from Google. This is quite important when 100% of Huawei smartphones use this platform. In addition, Android is also operating system that accounts for 80% of smartphones in the world.
Although Google has mentioned that existing Huawei devices can still use the services or receive the latest security updates. But the problem may last longer than imagined. Peter Richardson, director of technology strategy at Counterpoint Researchh, said Huawei won't be able to access new Android versions, such as Android Q, released later this year.
If you're thinking of buying a new Huawei smartphone at the moment, the advice is to wait for the latest information. But besides, it should not be too worried about losing any features on the company's new smartphones.
2. Will things be resolved sooner or harder?
It can be easily seen, the moves of Google or companies such as Qualcomm, Intel, etc. are consequences of the executive order of President Trump's administration. So anyone can guess what will happen next. The problem is to see what China's reaction to the upcoming talks with the US will be.
Huawei is currently the largest smartphone manufacturer in China and although the ban does not affect this market, Huawei still needs to rely on components imported from the US. In case China does not give in to the US, Apple may soon become a punishment target of the country in response to the US decree.
3. Does Huawei have plan B?
The answer is yes. Even according to the president of Huawei, the company soon realized the potential risks long ago, so it actively developed its own operating system and application store. According to some disclosures, Huawei's backup operating system named HongmengOS will be a breakthrough based on Android open source. Besides, the company also actively cares for the "pet" HiSilicon, the company specializing in manufacturing major Kirin chips for smartphones of the company.
Huawei has long sold its Android-based smartphones but removed Google services in China. So this is not so important to the Chinese market, but for other markets that are familiar with Google services, Huawei must definitely take preventive measures.
But what is difficult is how to make users familiar with the new operating system platform and the absence of Google services. To do this, Huawei will need a new sales policy at a more attractive price and actively invite developers to write their own applications for its operating system platform.
4. What about Honor?
Honor is a subsidiary brand, operating independently of Huawei. However, it is still fully owned by Huawei and uses a variety of technologies and supply chains from its parent company. However, there is no reason for US to honor Honor on the national security endangerment list like Huawei. If Google considers Honor as a separate OEM, it may license the service to this company.
5. Will Microsoft continue to Google?
Google has "stopped the shirt" before, but did Microsoft do that? This question currently has no solution because Microsoft is leaving the possibility of stopping updating Windows 10 for Huawei laptops. Even before that, Microsoft silently sold Huawei laptops on its sales page.
At present, Huawei laptops are highly appreciated and unlike smartphones, this product line is still being sold legally in the US market. Microsoft has not made any suggestions about the ability to listen or not to the decree of President Trump. But the ability of Microsoft to comply with the decree is very high.
6. Huawei has released the "top of the line", will other Chinese companies be "touched"?
From the perspective of experts, the inclusion of Huawei on the US Department of Commerce's blacklist is a two-hit arrow. The US has been able to "tame" China and can avoid the security risks that have been mentioned by security agencies in the country for a long time.
However, in fact, Mr. Trump's ban may not be aimed at Huawei but because of concerns related to Chinese law when the country requires foreign companies that want to do business here to link or transfer. technology with local companies. In addition, Chinese intelligence law also has provisions that require these companies to cooperate when necessary.
Previously, ZTE was also blacklisted in the US for the same reason. The company then lifted the ban after accepting the proposed US-mandated provisions, including the change of leadership and additional US independent oversight.
Many people are now questioning whether other Chinese companies will be the next victims of the US government. The answer is impossible to determine at this time.
The reason is that the trade war between the US and China is still very tense and both sides certainly do not want to "pull the forest". Even if the US actively attacked China first with the prohibition of Huawei, it is likely that the United States will not continue to escalate stress because the US itself will be the victim of great damage.
7. Huawei is caught in the US, is global 5G network affected?
The two sentences seem to be irrelevant but have a very intimate relationship. Huawei is currently the world's top 5G network equipment provider. Meanwhile, the company has to buy components from US partners such as Intel, Broadcom, Xilinx to manufacture 5G network equipment.
The US government's ban on business cooperation with Huawei will undoubtedly delay the deployment of 5G networks in many countries where Huawei is bidding. But obviously the problem always has two sides of it. US companies that are doing well with Huawei will lose a significant amount of revenue.
According to the Bloomberg, Huawei has promptly stockpiled components to produce smartphones and 5G network devices for at least 3 months before the incident. This is also the time when the US Department of Commerce decided to extend Huawei's terms so that both sides could find a common voice and help Huawei have time to look for alternatives.
However, it is clear that countries that are hiring Huawei to build 5G networks are worried about the speed of 5G network deployment may be delayed.