In May 2019, The United States announced the imposition of a trade veto on Huawei and its respective subsidiaries. This limits the ability of North American companies to carry out commercial transactions with the Asian technology giant, whom they accuse of representing a risk to national security. Hence, for example, that the latest Huawei phones do not incorporate the services of Google (North American company) that are so popular (and even decisive) in the European market.
The impact that these measures have had on Huawei is more than evident. The brand has seen limited or altered its capacity in multiple aspects, such as the acquisition of certain components or the use of certain software. However, the delicate situation between China, the United States and Huawei has not only affected the eastern members of this equation, it has also influenced American technology companies.
The veto not only hurts Huawei
Image: David Ortiz.
On the one hand, these corporations They have lost a very important partner from the economic point of view. Components and licenses from different companies are involved in each Huawei product, which, in many cases, are American. This is the case, for example, of well-known companies such as Google, Microsoft, Intel or Qualcomm. Some of them obtained, months later, a license that allows them to trade with the Asian giant respecting certain restrictions. But others, on the other hand, still do not have this possibility.
Beyond the economic, the veto to Huawei also It has influenced the role of North American companies in defining technological standards. As the Washington-based Information Technology and Innovation Foundation explains, US companies have been limited in their participation in the different associations responsible for defining industry standards, where Huawei also participates. “This restriction only damages the competitiveness of the United States without a clear benefit and should have been solved by the Department of Commerce a long time ago,” explains the foundation.
“These limitations on American companies occur as China drives its role in organizations that define global standards,” continues the ITIF. “This administration is putting American companies in the back seats while others have free rein to shape the pillars of the technologies that will mark the next generation of the economy,” he concludes.
Reuters, citing sources close to the US government, reported last May that the Donald Trump administration was working on a safe-conduct that would allow US companies share information with Huawei in these organizations in charge of defining the standards of the future. Until this comes into force, however, North American companies will remain self-conscious in such associations.