On China and Huawei: A Level Playing Field Is Required if Authorities Are Not to Fiddle with Markets

by Don Alusha | 3Q 2019 | IN-5564
The U.S. administration issued an executive order on May 15 to add Huawei to its so-called “entity list,” in effect preventing Huawei from buying equipment from American suppliers. An offshoot of the executive order is that it can potentially preclude the Chinese vendor from selling its products and services in numerous lucrative markets overseas. Huawei has since announced layoffs in its American arm, FutureWei, which is now a separate company with no ties to Huawei HQ. Discussions about whether or not Huawei will remain on the entity list are still ongoing, given that several U.S. companies will be adversely affected if they cannot sell to Huawei. ABI Research analyzes this complex situation through an economics lens and from a technological perspective. There are three key strands to consider: one, the broad economic reality between the U.S. and Chinese markets; two, the impact that the current economic situation between the two countries has on the technological landscape; and three, the effect this conundrum has on Huawei and its addition to the entity list.

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