The US has placed Huawei on a so-called entity list, making it almost impossible for the tech company and its affiliates to source components and services from the US. This is a major escalation in the US-China trade war and a huge win for protectionists in China, as well as the rest of the world.
Huawei purchases a substantial amount of components and services from the US, many of which have no alternative suppliers in other countries. Although Huawei claims to have a backup plan for some important chips, it is generally believed that not all chips and software can be rapidly developed in-house, especially if the company wishes to remain competitive. The immediate impact on Huawei will be devastating, for sure.
Huawei purchases a substantial amount of components and services from the US, many of which have no alternative suppliers in other countries. Although Huawei claims to have a backup plan for some important chips, it is generally believed that not all chips and software can be rapidly developed in-house, especially if the company wishes to remain competitive. The immediate impact on Huawei will be devastating, for sure.
