Moving into 2020, most of the major mobile supply chain and the channel will have active contingency plans to mitigate Huawei's decline and be ready for 5G device roll out in many markets, the research firm noted. He added that this may consist of a couple of other components, including limitations in shipments of minerals that are vital for use in the numerous USA made devices and electronic cars.
In light of the recent US Executive order signed against Huawei and uncertainties surrounding the US-China trade talks, the firm has lowered its forecast, reflecting an uncertain future. Last year, tensions reached a fevered pitch after the U.S issued an arrest warrant for Huawei Chief Financial Officer Meng Wanzhou, on charges related to breaching American sanctions against Iran, among other allegations.
Huawei's chairman Liang Hua was quoted by The Hill as saying, "We are willing to sign a no-spy agreement with the United States". China has an itching history of banning top tech giants of the USA, including Facebook and Google.
According to a filing sent to the Shanghai Stock Exchange by Hengtong Optic-Electric, a Chinese optical telecommunications network provide, it will bebuying a 51 per cent stake in Huawei Marine Systems.
U.S. begins collecting higher tariffs on Chinese goods arriving by sea
It is telling that Chinese President Xi Jinping visited rare earth companies after the trade talks in the U.S. fell apart. A rare-earth magnet is shown in a tech company showroom in Baotou, Inner Mongolia, China.
Under the terms of the USA blacklisting, companies have until Aug 19 to carry on dealing with Huawei while they seek to make other arrangements and the U.S. government weighs up longer-term measures.
SYNOPSYS INC: The electronic products and software maker said on May 23 the company was restricting trade with Huawei and this will impact its revenue. "Still, the United States government is sparing no effort to smear the company and mislead the public about Huawei".
The Commerce Department ban came down the same day that President Trump signed an executive order banning Huawei from the United States' next-generation 5G wireless networks and US officials have been urging allies to impose similar bans.
Huawei Marine Networks is a joint venture between Huawei and UK-based undersea cable firm Global Marine Systems. Huawei leads a long line of supposed infractions dating to the early 2000s, with Cisco going so far as to accuse Huawei of stealing their source code.
Looking at the bigger picture, it is possible that Huawei could be used as a centerpiece on U.S.