Since 2019, Huawei and other Chinese companies have been embargoed by the United States. This then prohibits them from cooperating with American companies. This completely deprived the Chinese manufacturer of software solutions such as the Android operating system or Google services. The same is true for hardware technologies such as the use of 5G. Sanctions that have practically led to the disappearance of the brand on the international scene in recent years. Nevertheless, new American rules could benefit the Shenzhen firm, which could soon work again with companies in the country of Uncle Sam.
Establishing the leadership of American companies
Since the introduction of Huawei on the blacklist of brands that cannot cooperate with American companies, the latter absolutely had to have a permit for any collaboration with the Chinese firm. Thus, they could only provide technologies directly approved by the American administration.
However, according to Bloomberg, the US Department of Commerce represented by the Bureau of Industry and Security has updated the rules for these sanctions. From now on, American companies can collaborate with entities marked on the blacklist without a permit but under certain conditions. For the moment, the US government has not yet clearly mentioned all these conditions. However, we know that cooperation should take place within the framework of the establishment of new technological standards in other countries.
In other words, these new rules are not at all to ease the sanctions against Huawei. They mainly consist in facilitating the mission of American companies. They must indeed propagate their new technologies in order to establish them as a new standard at the global level. Thus, the United States will be able to strengthen its technological dominance over other countries.
Hope for Huawei
In 2019, Huawei outclassed Apple in the smartphone market to become the world number 2. He even threatened to dethrone Samsung, a solid leader for many years. However, the ambitions of the Chinese firm have faded following the announcement of new sanctions by the Trump administration. Not only did the manufacturer lose its place on the world podium, but it also had to retreat to its own land.
Despite the absence of Google services, the brand’s smartphones can be used very well in the middle empire. Chinese users indeed use other local applications to take advantage of services similar to what the Mountain View company offers. This allowed Huawei to launch its own mobile operating system, HarmonyOSon new original smartphones like the Mate XS 2.
But to go beyond its borders, the Chinese manufacturer must imperatively access Google services, which are essential for Western users. The new American rules may thus constitute a small opportunity that the firm must seize if it wants to hope to regain the European or even American markets one day. Nevertheless, we still have to wait before seeing how these new rules will actually apply to this potential reintegration.