If you have a Huawei brand cell phone or are thinking of buying one, surely you have been attentive to the information that has circulated during the last month about the trade war between China and the United States, which has led to the breakdown of relations between Google and the Asian multinational. Here we tell you the keys to understanding the blockade of Huawei and the implications for those who have bought a smartphone.
The main fear of users is that Huawei phones will become obsolete and become just a shell, due to the fact that the equipment of the Chinese company uses the Android Operating System owned by Google, which allows application downloads through from the Play Store and constant updates of the equipment, for a better operation of the processes and security levels.
Huawei has come to the step of this news and has tried to calm its buyers by explaining that the equipment that has been acquired and those that are currently for sale will not have problems with the updates; They will be able to access the store normally and download applications. However, the problem will be in the smartphones that will go on sale from next August.
This new equipment would not enter into the agreement that the two technology companies had and would not have the Android Operating System, but would have a new system that Huawei has been working on for some time, precisely anticipating what would happen, but that We will tell about it later.
For its part, Google has qualified the statements of the Asian company and explained that the scope of its decision to suspend relationships goes further. In a statement, the California company explained that, for users of its services, “Google Play and Google Play Protect security measures will continue to work on existing Huawei devices.”
This means that they will continue to use applications such as Google Maps or Gmail, to name a few. But, in the same document, Google stated that it will not be possible to update the Operating System, essential for the correct functioning of the equipment.
Keys to blocking Huawei
To better understand where the fight against the Asian multinational comes from, it is important to know what the four keys have been for this blockade to occur.
- Espionage: in February 2018, for security reasons, the main intelligence agencies in the United States advised that the smartphones of the Chinese brands Huawei and ZTE should not be used. In May of the same year, stores on US military bases stopped selling mobile phones and modems made by Huawei and ZTE.The United States Department of Defense alleged possible security risks. That month, all US government entities were banned from using any type of Huawei device. However, the following month the governments of the two countries agreed that the telecommunications and technology company ZTE would operate again in exchange for paying a $1 billion fine, depositing another $400 million in custody, and allowing North American regulators to monitor its operations…In December, the confrontation escalated with the arrest in Canada, at the request of the United States, of Wanzhou Meng, the financial director, and daughter of the founder of Huawei, for the alleged violation of sanctions imposed against Iran. From there, the trade ‘war’ has intensified until May this year when Donald Trump included Huawei in a ‘blacklist’ that prohibits them from acquiring components from US firms without prior authorization from the Government.
In addition, the US president prohibited companies in his country from using telecommunications equipment “from foreign companies seen as risky for national security.” That led companies such as Google, Intel, Qualcomm, Broadcom, Micron Technology, and Western Digital, among others, to suspend their business relationships with Huawei.
- Technology: Another situation that has maintained constant tension between China and the United States is the obligation of foreign companies that arrive on Chinese soil to associate with a local firm in order to operate in that Asian territory. Although it is a protection measure for the local workforce and a boost for the growth of Chinese companies, for foreign governments it becomes a way of losing the confidentiality of certain technologies by having to share them with those local companies, and they even fear they could end up in the hands of the Beijing government.
- Race for 5G: Experts say that behind all this commercial war is the launch of the 5G technology that Huawei is already offering to different countries. Analysts indicate that what this ‘Technological Cold War’ hides are the concern of the Trump administration for the supremacy of China in the military career and 5G. Even the US president has lobbied different countries to join in his crusade to impose tougher measures against the Chinese company. Washington’s fear is that Huawei will install a hidden layer (known as the back door) in the networks
) with which the Chinese Government can control communications around the world, as a kind of Trojan Horse. The Asian company has stated that this accusation is unfounded and has offered access to its networks to the US authorities so that they can verify it.
- Tariffs: This trade war would have started in early 2018 when the United States imposed tariffs on solar panels, washing machines, and steel and aluminum imports from around the world. China would have responded with a tariff imposition on 120 types of North American products valued at 3 billion dollars. In September last year, Washington’s measure would have escalated to 10% tariffs on products from China, worth 200,000 million dollars, to which Beijing responded with tariffs on US goods valued at 60,000 million dollars.
Washington’s last step was to increase previously imposed tariffs to 25%. China’s retaliation was to raise to between 20% and 25% the tariffs on those taxes that it had already levied before.
‘Technological Cold War’
The United States and China are immersed in a trade war that is affecting markets around the planet since both countries are part of the group of most important economic powers.
The struggle between these two nations has become known as the ‘Technological Cold War’. Experts point out that the Trump government has chosen Huawei as the main target of attacks due to its position as a technology giant, as it is representative of the Asian country.
The truth is that the multinational company presented its annual balance last April. The report indicates that it had a year-on-year growth of 19.5%, with a sales income of over $105.1 billion dollars and its net profit reached 8.6 billion dollars, with an annual increase of 25.1%.
That growth was reflected in its percentage of market share, moving to second place with 19% so far this year, above Apple which fell to 11.7%, but below Samsung which remains in the first place, with a 23.1% global share.
What do you think of these keys? At Next U we have the careers you need to acquire this knowledge and train you as an expert professional in the world of technologies and what moves around them.