Trump Ban Blacklists Huawei
Friday past the Trump administration blacklisted Huawei due to an unfounded belief which earlier caused the administration to accuse the China based tech giant of aiding Beijing in their espionage efforts. This gave rise to further threats about possible actions to cut the company’s access to all US based software and semi-conductor industries. All essential industries and products the tech manufacturer requires to produce its wares.
The long-anticipated ban would hamstring the globe’s largest supplier of networking products and second largest producer of mobile smart devices in its ability to carry out its operations to the fullest in the short term.
On Monday, these threats from the Trump administration to choke Huawei Technologies made itself felt in a series of reverberations that echoed throughout the industry and its global supply network. Appearing to deliver a major impact on several of the largest component manufacturer-suppliers.
According to insider information, tech R&D companies Xilinx, Broadcom, and Qualcomm, all internationally recognized as technical world-leaders in their respective fields and also known as the industry’s largest chip set manufacturers have officially informed their employees of a blanket hold on all supplies to Huawei, it will remain in effect until further notice.
Similarly, Alphabet had Google suspend their supply of various hardware and many software services to Huawei, according to an unnamed company familiar who wished to remain anonymous. This obviously would have a massive rippling effect on not just the tech-giant itself but also the range of services available to Huawei users.
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While the media speculates and bleats about minor considerations such as the effects of Google’s suspension of Play Store, YouTube, and other licence services to Huawei, they miss the major impact this latest Trump initiative could potentially have on the global economy.
Aside from the named American tech companies, further effects of the trade ban may also make themselves felt more widely at home if it affects production at US based chip giants such as Micron Technology causing delays in planned roll outs of 5G wireless networks in the US and worldwide. This, in turn, would cause damage to US businesses that have become increasingly reliant on the globe’s second biggest economy for their future growth.
The announcement of the decision showed to have a decidedly negative impact in related companies and industries sideswiped by the fallout of this latest insanity. Walloping share prices of Asia based tech companies forming part of the supply chain on Monday at the start of business trade.
In a counter move to prevent any expected potential future actions to disrupt it business, Huawei, in preparation stockpiled a 3-month supply of chips essential to continue the uninterrupted operation of its services and supplies to its customers.