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HUAWEI

BANNED IN US
LOOKED THROUGH
THE EYE OF
GLOBAL ECONOMY
RESEARCHED BY:
ERICH ISNAIN,
BERNADETTE NICDAO AND ALBERT
FRANCISO
THE TEAM

ALBERT
ERICH ISNAIN DETTIE NICDAO FRANCISCO
INTRODUCTION YOU NEED TO KNOW
At the end of 2018, the US passed a bill preventing
the federal government and its agencies from
doing business with the Chinese technology
giant, Huawei.

In 2019, the company, along with several dozen


subsidiaries and affiliates, was added to the US’s
“entity list”, severely restricting US companies’
ability to do business with one of the world’s
On May 15, 2019, President Trump largest telecommunications equipment firms.
issued an executive order that bans
the use of telecommunications In response, American tech companies severed their
equipment from foreign firms links to the multinational, including Microsoft,
deemed a national security risk. Google and Intel.
WHY? THESE ARE THE
REASONS
• All these countries and companies are expressing
concern that China’s government could exploit Huawei’s
technology to spy on them,
stealing corporate or government or military secrets.

• Its founder, Ren Zhengfei, is a former technologist in the


People’s Liberation Army As his company grew, so did
international concerns about whether Huawei equipment could
be used to spy on companies and governments around the
world.

• The company had a large history of accusation dealt to them with


regards to stealing tech from other company (evident with
CISCO) and IP thefts which proves hearsays of security threats.

• It was assumed that Trump would try to strongarm deals from


China that would be advantageous to the US and then be done
with it. A POLITICAL MOVE.
WHAT DOES IT DO
TO HUAWEI?
HUAWEI will not have access to all the necessities to
make their products work.
Huawei “is heavily dependent on U.S. semiconductor products and would be
seriously crippled without supply of key U.S. components.

Their phones won’t have GOOGLE APPS and FUNCTIONS with


them but Android is excluded.

PARTS OF THEIR PHONES like processors from QUALCOMM and


other chipmakers will deter the production of phones.

The Roll out of their 5G tech will slow down and be halted.
WHAT DOES IT DO
TO THE REST?
HUAWEI’s connected affiliates and companies
will lose their profits. As the company is not the
only who benefits them.
Intel, which gets less than 1% of its revenue from Huawei, fell
2% Qualcomm, which gets about 2.6% of its revenue from
Huawei, fell 4.8%. Lumentum Holdings Inc. its shares fell 3.7%.
Broadcom, with 5.3 percent revenue exposure to Huawei, was
down 4.4% percent.
What Happened is detrimental to both
countries as their trades with one another
are affected. But with China, specifically
HUAWEI, dealt with the most danger.

CONCLUSION
REFERENCES
• https://www.androidauthority.com/huawei-google-android-ban-
988382/
• https://www.bloomberg.com/news/articles/2019-05-19/google-to-
end-some-huawei-business-ties-after-trump-crackdown
• https://theconversation.com/whats-wrong-with-huawei-and-why-are-
countries-banning-the-chinese-telecommunications-firm-109036
• https://www.newstatesman.com/spotlight-
america/cyber/2019/11/whats-really-behind-uss-huawei-ban

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