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Trade tensions between the United States and China have been steadily increasing since the Chinese trade delegation returned to a fundamental point regarding the protection of intellectual property of US companies. The Washington examiner wrote a month ago: "The office of the US Trade Representative warned Thursday that China should do more to prevent the theft of intellectual property, saying that his country has not implemented any reform and remained a "dangerous and uncertain environment." A USTR official said the Trump administration could ask for additional tariffs on China if the reforms do not happen. "The reforms have not took place and President Trump set up new tariffs last Friday. More importantly, President Trump's war against the Chinese telecommunications company Huawei has gone into high gear.
As the US government began its war against Huawei in February warning European allies not to use Huawei's 5G technology, it is this week that the United States has really begun to turn a blind eye against Huawei. The headlines quickly and furiously made the effect of squeezing a noose around Huawei's neck.
It was reported this week that an American start-up accused a Huawei executive of being involved in a theft of trade secrets. The Korea Times reported today that "the United States and China have toughened their stance against Huawei on Thursday, while Washington dismissed accusations of" bullying "and accused the Chinese tech giant of imparting an image. false link with the Beijing government. "
The Korea Times newspaper further wrote: "US Secretary of State Mike Pompeo said in an interview that Huawei was not honest about his relations with the Chinese government and that it meant that any given data affected by the company could fall into the wrong hands.
"To say that they do not work with the Chinese government is a false statement," said Pompeo about Huawei. "
Last Friday, Apple released a report titled "The US Position on Huawei Intensifies by Putting 67 Huawei Subsidiaries on a Blacklist Banning Access to US Vendors", which paved the way for revelations of the week.
The first big news this week has been that Google and leading US chip makers have suspended key software and hardware components at Huawei due to a blacklist from the US government.
Reuters said that "the suspension could hinder Huawei's smartphone market out of China, the technology giant will immediately lose access to Google's Android operating system updates." Huawei smartphones running Android will also lose access to popular services, including Google Play, Apps Store and Gmail, and YouTube. "
The second big news was a bomb. ARM has suspended all of its business with Huawei. Huawei is supporting ARM for chip design, including its Kirin processor.
The week ended with a series of negative reports on Huawei. Here are some examples:
01: "Mobile operators in the UK and Japan suspend Huawei 5G phone launches." The Korea Times reported that "UK companies EE and Vodafone, as well as Japanese companies KDDI and Y! Mobile, have announced the suspension of the launch of Huawei smartphones, some of which can be used on next-generation mobile networks. , in the uncertainty surrounding the devices of the world No. 2. smartphone maker. "
02: "Huawei's European customers are put on hold by the US ban." The New York Times began its report noting that "Europe has been one of Huawei's greatest successes." We reported this week that Huawei had grown 70% in Europe in the first quarter of 2019.
03: "Companies from UK, Japan and Taiwan join anti-Huawei campaign.": Business Korea said "Japan's three largest mobile companies have announced that they will delay indefinitely Release of new Huawei smartphones or suspend pre-orders KDDI and SoftBank, the second and third largest mobile operators in Japan, have indefinitely delayed the launch of Huawei's new smartphone, the P30 Lite, on May 24. "
04: "It is forbidden for Huawei to use SD cards in future devices." Engadget today announced that "the situation is only worse for Huawei and the company has been banned from becoming a member of the SD Association, the commercial group responsible for the standardization of SD and microSD cards. that Huawei will no longer be able to offer official SD or microSD support in its devices, including phones and laptops. "You will find more information about this on 9to5Google.
05: "Huawei's shipments could fall by a quarter this year." Reuters said that "the Chinese Huawei, hit by severe sanctions in the United States, could see its shipments fall by a quarter of the year this year and that it could lose its smartphones in the markets International ".
Huawei is perhaps not the only Chinese company to be affected by the US government. According to a new Bloomberg report released today, "Trump 's latest goal in China includes a rising star in AI". A facial recognition company named Megvii, supported by Giant Alibaba. Megvii is not well known outside of China, but it's a booming behemoth at home.
Megvii said his technology was deployed in more than 260 urban projects, helping the police to arrest more than 10,000 people. The Trump administration has hinted that it could be five other Chinese companies, including Megvii, banned from selling in the United States.
The stock market is worried about the fall of the trade war between the United States and China with Dow Industrials for the fifth week in a row.
While Apple's iPhone's success in China has been declining for the past few quarters, it's more about the economy and that Apple's premium iPhones are a bit out of clbad reach average in China rather than politics. Although time pbades and Huawei suffers from the US blacklist, the wind could turn on Apple, which is a huge technology target for the United States.
An article from the South China Morning Post (SCMP) attempted this week to rattle the cage "Apple's troubles in China could worsen as the ban on Huawei is prompting the fans of the iPhone to change sides. Clearly, Apple has concealed some of the uncompromising Communist anger against the Apple iPhone late December.
The good news is that responsible Chinese business leaders are mobilizing and trying to calm patriotic rhetoric.
According to Bryan Ma, IDC Asia Pacific's vice president of consumer device research, Apple expects Apple to feel some of the shock, although he warned against exaggeration.
"Apple is after all a luxury brand and everything ultimately depends on users," said Ma. "Some will be nationalists and will say no to American products, but there are many other users for whom this is not the case. Not so important. "
Even Huawei wants to downplay patriotic rhetoric in China, knowing that economic conditions may change over time and that the anger of its potential US and European customers is not good for the company in the long run.
The SCMP report also noted that "Even Huawei's CEO, Ren Zhengfei, tried on Tuesday to calm the nationalist fervor on public television, saying that patriotism should not be badociated with the purchase of Huawei phones.
Zhengfei specifically said that "the iPhone has a good ecosystem and when my family is abroad, I always buy them iPhones, so we can not think closely that the love for Huawei should mean loving Huawei phones. " It is unclear whether the televised speech by zhengfei was a genuine call for calm or a public relations ploy.
In the end, the story of the week was undoubtedly the hammer that fell on Huawei with a gigantic thump. Yet, on the whole, it is still too early to know how this will affect society in a year. Yesterday, President Trump said: "It is possible that Huawei be included in a trade agreement.If we enter into an agreement, I can imagine that Huawei be included in some form or part of a trade agreement."
The United States have a good playing card with Huawei in their trade negotiations with China and add other high-tech companies every week or every month to their blacklist will only increase their performance. On paper, everything seems to be fine, but the way this will be done in the coming weeks is another matter. Stay tuned, more information about it will probably extend until next week.
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