The trade ban currently instituted on Huawei has done plenty of damage to the company’s bottom line, severely limiting their ability to sell phones around the globe and putting a serious damper on otherwise exciting product launches.
But it looks like that ban is going to get even worse, at least if the US government has anything to say about it.
Huawei trade ban gets worse
New measures will be taken to further restrict Huawei’s ability to secure parts and equipment, and would require that foreign companies that use US chipmaking equipment would need a US license to supply those chips to Huawei. That’s a step further than the current restrictions that only prevent Huawei from dealing with US companies.
This new move seems aimed at keeping TMSC from working with Huawei, which would inhibit Huawei’s ability to continue producing their own Kirin CPUs.
However, much like the original trade ban instituted on Huawei, this kind of move will almost certainly create some collateral damage. It limits other companies’ abilities to stay competitive if one of their biggest customers gets forced out, and Huawei could eventually create its own supply chain with its own infrastructure that would long term just bring more business under their umbrella while hurting US companies in the process.
It’s a tricky situation, and one that seems to keep heating up with both China and the US butting heads and casting blame over the current COVID-19 pandemic. This is just another bargaining chip in that dispute and the overarching trade war that’s been boiling over for the last few years.
The best music streaming services in 2020 Huawei announces the P40 Pro Plus Our favorite VPN is running a cheap deal right now Google Stadia review