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2018 was a bad year for both Huawei and ZTE and it would be difficult for either company to put a positive spin on things. Unfortunately for either company, 2019 is about to get worse because US lawmakers have introduced bills that would effectively ban the sale of US chips and components to Huawei and ZTE and other Chinese companies that violate US sanctions or export control laws.
While Huawei and ZTE no doubt source their components and tech from all around the world, being banned for buying these components from the US would no doubt strike a major blow to their operations. In 2018 ZTE announced that they were shutting down operations after sanctions were levied against them by the US government, so we imagine that should these new bills come into effect, the impact will be massive.
So far the US has already managed to convince several of their allies that they should not use Huawei’s telecommunications equipment in their infrastructure anymore. Countries such as Japan and Australia have been reported to have banned the use of Huawei’s tech, and more recently Germany is also considering a similar move by imposing stricter security requirements that they believed would effectively exclude the company.
In the meantime Huawei’s founder who has typically avoided speaking publicly has come forward to insist that his company is not a spy for the Chinese government, but for now, it certainly sounds like our predictions that 2019 could be the beginning of the end for Huawei (and possibly ZTE) might be coming true.
Source: Reuters
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