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Trump vs. Huawei – it's on

Last week, US president Donald Trump signed an executive order with far-reaching implications, effectively declaring a national emergency. Everyone immediately suspected this decree to be primarily targeted towards China and Huawei, as there had been accusations beforehand. But the White House was quick to deny any such claims, stating the order wasn't targeted at any particular country or company. A week later, Alphabet, Google's parent company, terminated all business relations with Huawei. What a surprise. Read on to learn what this means for owners of Huawei cellphones and what the emergency is really about.

Step by step towards escalation

Why now?

The US and China have been engaged in a trade war for quite a while now, with import tariffs being the weapon of choice. Currently, new negotiations are on the horizon and both sides are tightening the thumb screws. This latest executive order bans US companies from using telecommunications equipment supplied by "foreign adversaries" to prevent espionage and sabotage. As cellphone networks in the US are in the process of transitioning to 5G, with Huawei being a major supplier, this decision carries a lot of weight. It authorizes the Department of Commerce to stop all trade relations it deems an unacceptable risk to the security of the country and its citizens, unless said parties have a license – issued by the Department of Commerce, naturally. Since the 5G cellphone network is still in its planning stages, other effects have presently become more visible. First bombshell: Alphabet was forced to cease all business activity with Huawei concerning cellphones (and tablets etc.), but it's not the only company that is affected.

Is Huawei banned from using Android?

The short answer is no. Alphabet does not own Android, even though the company is clearly calling the shots and supplying the most funds. Android is open source, meaning it's usable free of charge by anyone, including Huawei. However, the company no longer has access to services provided by Alphabet (obviously). This means Huawei will loose its early access to Android updates and will have to distribute these updates to their users themselves. While other cellphone manufacturers will continue to receive upcoming updates early, to allow for enough time to ensure compatibility with their custom user interfaces (launcher etc.), Huawei is now at the back of the line. Consequently, security and feature updates for Huawei's devices will likely be delayed by several months. And major version updates, e.g. from Android 9 to whatever the next version will be called, won't be made available to Huawei at all. Furthermore, all services owned by Alphabet (Google Play, Google Maps, Google Playstore and others) won't be shipped with future Huawei products. The services will continue to work with existing devices, though. It's not the end user that is targeted Iy these measures but the manufacturer.

Is this the end for Huawei cellphones?

Of course not. Despite all the posturing, it's still unclear how long these measures will be in effect. There had been sanctions imposed against ZTE back in April 2018 that brought production to a standstill, but they were later mostly lifted and business relations resumed. Besides, Google's services are not present on Chinese Huawei devices to begin with, since their use is forbidden by the government. Instead, Chinese users have their own app store running on vanilla Android devices "augmented" with feature-rich Google-like services, but with Chinese characteristics. It's a different story with US and European markets, though, where Google's exceptionally well interconnected services are widely used and accepted. Trying to establish a new app store could meet with significant customer disapproval, provided customers would still be willing to purchase Huawei devices in these countries in the first place.

Government-friendly and point of contention

Can the US make do without Huawei?

This may sound like a dumb question, but it's a valid one. The transition from 4G to 5G cellphone networks is a done deal, and without Huawei (or other Chinese suppliers), this process could take longer and cost a lot more. Especially cellphone carriers might object to the delay since fast 5G is a great selling factor that could open the door to billions of sales. And then there are (still!) proponents of the idea of free markets who are waiting for so much as a shred of evidence that would substantiate the vague and sketchy accusations leveled at Huawei by the US government.  A statement from the White House simply says there were sufficient grounds to believe Huawei's activities are violating national security interests. Well, that sounds strikingly similar to what they said in their allegations against Kaspersky, ZTE, semi-conductor manufacturer Fujian Jinhua and many others. These cases date back several months but we have yet to see any tangible proof.

Are Huawei devices a threat?

Now, we're getting to the point where the US government may have some explaining to do. If Huawei devices are so dangerous that they warrant the declaration of a national emergency, why not ban all electronic equipment from the company, past, present and future? Huawei ranks as one of the top suppliers of communication equipment, along with Samsung and Apple. So what about existing telco infrastructure? Don't these devices have to be replaced in the interest of national security? If cogent proof exists, why isn't the government taking action? Skeptics believe this to be just another form of economic war. Boycotting an essential business sector may force some negotiating partners to come around, but think about how much more leverage you'd have, if you had ironclad proof of gross misdemeanor! You could wipe out a company, and not just in your country but on a global scale!

What the future holds

It's clear we're only witnessing the beginning of a new development, since Huawei is not the only major supplier of Chinese telecommunications equipment. And what about PCs, servers and other device categories? Is it safe for the US to import any type of electronic equipment from "foreign adversaries" that could potentially feature spying capabilities? Unsurprisingly, Alphabet is not the only company to cease business activities with Huawei. At present, Intel, Qualcomm, Broadcom and Xilinx have followed suit. Not only does this cut off Huawei from important microprocessors but also from parts used in their network components. Time will tell how quickly Huawei will be able to find alternative suppliers. Being a government-friendly company, they certainly have an abundance of options, but in any case, the cost will be high and sales slumps likely.

What do you think? Was the ban born out of the desire to protect the security of the nation or is it just a new chapter in an economic war?

32 comments
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  • L

    Everything of CHINESE should be banned everywhere in the world except for CHINA itslef!!!

  • D

    It's just an economic war!

  • A

    Perhaps the most interesting aspect of this scenario lies in the speed with which Huawei released its own OS-here in the west it is known as Harmony OS-it is not Linux like Android is- it is also open source and may well be developed further by the community which forms online around it-will it cause Google to speed up somewhat the issue of its own Non-Linux OS[which is also supposed by some to be open source]-Fuchsia? Truly we live in interesting technologist times!

  • R

    I Had A Huawei Phone, It Was The Best Phone That I Ever Had.

    I Am Now Stuck With A Samsung Which Is The Worst Phone That I Ever Had, And The Most Expensive.

    I am Thinking That Trump's relationship to Samsung Should Be Investigated.

  • G

    I am the owner of a Huawei cellphone.

    Bit peeved at the moment.

    George

  • M

    Once Trump is finally impeached, his punishing China, and forging stronger ties with Taiwan will be the only positives from his illegal time in office. But for those fooled by the claim by people either ignorant of China's illegal government, the cult of Mao terrorist regime and their methods and goals, or apologists for them, this article is one of many that can educate you.

    https://www.hongkongfp.com/2019/01/20/huawei-founders-protests-mean-nothing-independent-chinese-companies-simply-dont-exist/

  • Thanks for the many insightful comments! I very much enjoy critical, factual feedback. That being said, feel free to vent your frustrations. There's no ban on emotional outbursts in this blog. :)

  • D

    Trump is an apprentice and would be fired for incompetence were he working for a major corporation such as Huawei. That idiot used the same "violating national security interests" against my country Canada on trade agreements. Washington has become an ugly neighbour to us.

    Americans are sore losers Sven. Huawei began creating the system in 2009 and invested billions into research and development. A Huawei 5G network runs at 2Gbps 4K HDR and will introduce 8K technology hitting 5Gbps. No they did not steal the technology since the last time the US had anything this technical was during the moon landings. More rubbish from whoever is running the US. They should admit the biggest spy network is Win10 from Microsoft.

    Since 2003 the US has lost more than it gained including friendly countries. Too busy spending a trillion a year on weapons to kill rather than useful technology. They loose the world wins.

  • A

    I have seen a Huawei router in Australia hacked with potentially malicious code forcing all traffic to a Chinese site. It was unexplained. Clearly a backdoor was exploited. Whether or not it's spying I don't know. What I do know is that I'm glad that router wasn't in my home. I refuse to use the products.

  • T

    I am retired and live in Vancouver, Canada now, but back in the 80s I worked as a reporter for the Oslo, Norway office of the news agency Reuters. In particular I remember one news tip that piqued my interest at the time. A medium sized Norwegian ship builder had received a notice from the Chinese government of interest in ordering a fleet of supply ships for offshore oil rigs - based on the design of similar ships for use in the North Sea. That of course created a lot of excitement at the shipyard with some workers planning on what to do with the extra wages from overtime work. The process went on for several months with the Chinese requesting more and more specifics, blueprints etc. on the proposed vessels and the equipment aboard them. Finally they stopped hearing from the Chinese who needless to say had given the contracts to a Chinese shipyard using the blueprints and specifications obtained from Norway, Unfortunately that has since proved to be a template for doing business with China, assume you are being robbed, conned and lied to and you will avoid disappointment. I believe that is also the dilemma facing whoever wins the fall federal election: Do we trust Donald Trump or the Chinese? Well based on the experience I mentioned above. I feel I know the answer to that question.

  • P

    "there are (still!) proponents of the idea of free markets who are waiting for so much as a shred of evidence that would substantiate the vague and sketchy accusations leveled at Huawei by the US government"

    As a proponent of the idea of free markets, I have no problem with imposing restrictions on companies and/or countries that are not playing fair, and I think it's fairly well established that China doesn't play fair.

    As for some of the anti-Trump sentiment expressed in comments here, Peter Ffrench's comment that Trump is a "blithering idiot" is arrant nonsense (you can disagree with his policies or views without calling him names), and Aussie Huawei User's claim that the rest of the world is laughing at the USA is also untrue (the left are, conservatives are not, no matter which country (I'm also in Oz)), and his claim that the U.S. can't see it because "they only get news that Trump wants the masses to believe" is laughable, given the incessant Trump bashing that the mainstream media in the U.S. engages in.

  • J

    Hi Sven,

    Whether individuals like or dislike Trump, he was elected.

    Look at other leaders around the world, like or dislike them, they are in their political position and don't care a hoot what we think or say.

    Get on to more important issues, how many countries politicians allowed most of their manufacturing to be given to Asia, a long list of cell 'phones and components are made in China, irrespective of the 'brand names' which originated in countries such as Britain, USA, Germany and others.

    Electrical goods and appliances manufactured the same way, then add all the other products.

    Whatever the situation with Huawei and Google, individuals in other countries are wasting their time with assumptions, Google are not squeaky-clean in their operations of gathering personal and private information from Google users, targeting ads, blah-de-blah-blah, , "To Match Our Preferences."

    Most of our manufacturing has gone to Asia, but people lived for many years using products made in their own country.

    Do the politicians and manufacturers in China want to take over the world, probably, because 'we'

    allowed them the opportunity, it is happening, either take back control or get used to it.

  • N

    So let me get this straight. The Trumpster is compaining that Huwaei is under some kind of government control, so he feels that they're a danger to US security.

    So his government tells Google to stop supplying Huwaei with product. And they do. Google is clearly under US government control.

    How are these two different? And why should anyone outside the US see this as anything other than a bully-boy attitude on the part of an economy that's being soundly thrashed by its competitors?

    I've now removed Google Playstore, Maps and others from my Android phone - which is not a Huwaei, by the way. It's amazing how well we can do without them all.

  • A

    The USA says something and we are all supposed to believe them. Anyone remember WMDs and all the proof there was back then. Remember it's Trump, he complains about "Fake News" so he has to create "Fake Proof" to counter it. The rest of the world is laughing at USA but they can't see it because they only get news that Trump wants the masses to believe. Just curious why I aren't iPhones a banned import. Made in China, Siri an inbuilt spying program, oh my God run for the hills you're doomed.....

  • B

    one can only hope that silly Trump will be not voted in again ..... but then again = it is USAmerica

  • P

    A case of greed by the Yanks..not unlike the restrictions on Iranian oil...where the Yanks meet the shortfall with their own product...what an astute business acumen they display!..a cabal of profound liars with a history of same.

    Trump?...under instructions by the deep state?

    Clearly...this man has not got the intellect for autonomy.

    Credit where it's due...he did excel as a bullshit wrestler.

  • J

    I'm not going to defend Trump, but I've been saying for more than a couple decades that China and Huawei are a Security Threat to the United States, as well as other Countries, in the Free World.

    Huawei is Government controlled. Once you realized what the plans are for the Chinese government for China's Future, which without a doubt is World Domination, you realize that they are a World Threat, but China considers the United States the main Threat to their plans.

    Anyone who doesn't believe that Huawei, a Government controlled company, isn't spying on anyone that has Huawei Hardware installed in their devices is fooling themselves and is beyone ignorant.

  • J

    The ban on Huawei equipment on "national security" grounds and the strong-arming of other countries to do the same seems to be even more specious following the latest Trump comment that Huawai's problems may go away upon resolution of the trade agreemement stand-off with China.

    This doesn't condone China's system of IP appropriation (shared technology "agreements") but does place the ban in its correct context. Supplying proof of Huawei's backdooring of their software (bearing in mind that Huawei gave access to their software to interested governments and all that was found was some sloppy coding) or ability to remotely access their hardware / software and supply any product to the Chinese government would bolster the arguement, something that, in public at least, has been singularly lacking.

    The biggest problem, for future proveable threats, is the erosion of trust in the US administration to actually be telling the truth and not using national security predicates as a synonym for US trade advantage / protection, effectively a "crying wolf effect".

  • A

    The USA says something and we are all supposed to believe them. Anyone remember WMDs and all the proof there was back then. Remember it's Trump, he complains about "Fake News" so he has to create "Fake Proof" to counter it. The rest of the world is laughing at USA but they can't see it because they only get news that Trump wants the masses to believe. Just curious why I aren't iPhones a banned import. Made in China, Siri an inbuilt spying program, oh my God run for the hills you're doomed.....

  • R

    Sorry to state the obvious but this is just another Trumped up charge.

  • C

    As a well known operating system supplier can brick your pc with a dodgy update, no connected device is safe regardless of the manufacturer - unless you have full code and circuit diagrams and the time and ability to check them (and maybe not even then!)

  • J

    I disagree with the previous 2 comments.

    Chinese are known to steal (and enforce transfer of) intellectual property. Put it simply, they do not play by the international (advanced ) rules of commerce.

    Why give them an opportunity to install all sorts of back-doors to facilitate stealing of industrial and security secrets. Would they allow that kind of sensitive infrastructure in their country, I think NOT.

  • M

    I wish Zven's comments section had a "Like" button similar to Facebook's. My first 'like' would go to Peter Ffrench's comment

  • P

    it is economic primitive war .......

  • L

    Huawei has already announced it will have its own operating system (probably forked from Linux, my guess) by autumn this year or spring next year.

    The US had better find actual evidence that Huawei devices are capable of spying, otherwise this particular economic battle will hurt the US as markets may turn against it. Google and Facebook spy & stalk people all over the world, all of the time without the users knowledge, but that's okay because they're US companies.

    I think it's time that global nationals stop feeding the real spies with ad revenue and data.

    China has many of the necessary rare earth minerals that devices need to function. China can turn off the tap to the US. Sure the US could use Brazil's minerals, but it may not be without some disruption.

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