US President Donald Trump's move to effectively ban Chinese telecommunications companies from doing business with US companies is going to affect both the nations and the global technology industry, industry experts said.
Huawei and ZTE have been added to the "Entity List" from Friday and prevent it from buying parts or technology from US vendors without governmental approval, as the equipment is considered potential tool for Chinese espionage.
"With this executive order, both US component suppliers and Chinese suppliers would be affected, it is definitely a" double-edged sword ", says Mo Jia, research analyst at Canalys, TechRadar Middle East .
He said Huawei's 5G equipment is cheaper, secure, and the United States can use products from other vendors, but is usually of higher price, and it is worth noting that the other two major players in this room ̵
"Currently, the relationship between Huawei and European countries is stable; However, there is a possibility that more countries in the future can join the American suit. Australia has also banned Huawei's 5G equipment. But at this stage, it is unlikely that any other major European countries will ban Huawei, as its 5G solutions are cheaper and competitive compared to other players, he says.
Sukhdev Singh, Vice President of Market Research and Analysis Service Provider Kantar AMRB, said that the US regulators and government are always ready to influence other countries' decisions with whom to cooperate and which can impact the telecom operators globally.
However, he said that the local technology decision is becoming more mature and not so dependent on US technology providers now.
"Everything depends on how much each government is convinced, and if the government's influence is not there to ban Huawei, it won't have much impact on Huawei. If the US and other countries prohibit Huawei, they will have limitations and fewer Telecom players, and it can damage the telecom industry's innovation and growth, "he said.
How important is Huawei in the 5G race?  Huawei has 283 global partners and 57 regional partners for 5G, and expects to have one million base stations globally by 2020.
According to the Chinese business on the Internet market platform IPlytics, it runs the number of 5G standard technical contributions of a company . Huawei had 11,423 patents in 2018, followed by Ericsson with 10,351 and Nokia with 6,878, the other two major network equipment licenses.
With Huawei investing $ 15 billion in R&D annually and standing among the top five, it has a clear strategic positioning in the 5G race and has the capacity to mass produce 5G chips, 5G mobile routers and CPE (customer service). wireless router for home.
Apple, Intel and Qualcomm may face pressure
If China and the United States trade war continues, Jia says it will probably also affect the global technology industry.
Apple, Intel and Qualcomm business may be affected in the future in China, as they are both US companies. However, Chinese smartphone providers also rely on Qualcomm's chipset, and if China forbids or increases Qualcomm's fees, it will also harm Chinese players.
If the United States prohibits Huawei from purchasing component or software from US companies, it would surely affect Huawei's global business and thus affect the general industry as well, he said.
Huawei buys more than $ 11 billion in goods and services from US companies every year, reports industry reports. Jia said Huawei has deliberately made several components before the executive order, and "in the short term, I think Huawei still has sufficient components, but if Huawei did not change the situation, it is a matter of time that the production of its 5G equipment will be affected.
Sources suggest that Huawei has developed its own operating systems for computers and smartphones if those provided by Microsoft and Google are no longer available. Huawei's subsidiary – HiSilicon – also produces its own CPU and GPU for their smartphones.