The US has blacklisted Huawei, leading to a series of US-based companies coming out to sever ties with Huawei citing "compliance with the US government's policy." But is this really a good move? As more and more companies join in this "ban Huawei" move, it will only isolate Huawei (and China, since the prediction is that this will eventually spread to more and more Chinese companies), and force Huawei (and other Chinese companies) to come up with competing products and standards since they can no longer use existing US ones.
The outcome? Three distinct possibilities.
1. New Chinese standards and alternatives fail to take off, eventually forcing them out of the global market. Everyone remembers Trump as the person who helped save US supremacy.
2. Competing Chinese products and standards manage to prove themselves as viable alternatives, splitting the market and bringing about a new "Cold War".
3. Competing Chinese products and standards prove to be much better alternatives, causing consumers to switch away from US ones. Trump will forever be remembered as the idiot who helped accelerate US decline.
Which will it be? Only time will tell. But we must remember that there are already Chinese alternatives out there, so Chinese companies are not starting from scratch. It now remains to be seen how fast Chinese companies will strike back.
The outcome? Three distinct possibilities.
1. New Chinese standards and alternatives fail to take off, eventually forcing them out of the global market. Everyone remembers Trump as the person who helped save US supremacy.
2. Competing Chinese products and standards manage to prove themselves as viable alternatives, splitting the market and bringing about a new "Cold War".
3. Competing Chinese products and standards prove to be much better alternatives, causing consumers to switch away from US ones. Trump will forever be remembered as the idiot who helped accelerate US decline.
Which will it be? Only time will tell. But we must remember that there are already Chinese alternatives out there, so Chinese companies are not starting from scratch. It now remains to be seen how fast Chinese companies will strike back.
1 comment:
This is a video by The Economist about the Huawei issue. It seems that there is no fact to support the suspicions about Huawei, but the Trump administration is going ahead with this so as to suppress the rise of China and maintain U.S. supremacy.
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