The relation between Huawei (the Chinese phone maker) and the US has boiled over officially. For nearly a year and half the tensions between the two have been surging, involving the unprecedented revocation of the android license of Huawei, the complete bans on trade, and deals being pulled out by carriers for providing phones of Huawei. In all this time, the extradition of Meng Wanzhou – the CFO of Huawei who also is the daughter of Ren Zhengfei – the CEO and founder of the company by the United States related to fraud charges.
However, the long-held belief from the intelligence community of the United States and the lawmakers had been the key resource of the controversy. It was claimed that Huawei functions on the basis of the government of China. Further, it also poses different privacy and cybersecurity risks for the UK and American customers eventually leading to undermining the national security of the United States. This eventually resulted in the cut of the official Android licensing program of Google by Huawei. It also lead the future of the company hangs in the balance. Further, uncertainty has been created by this incident related to the future of businesses in China amid the trade war by Donald Trump – the President and raising serious questions related to the role of Huawei in the Windows and the ecosystems of 5G.
In 2019, an executive order was signed by Trump the President according to which the companies in the United States were commanded to cut off their relations with Huawei. The outcomes expected of this increasing trade war between the biggest producer of the world (Huawei) and the largest customer of the world (United States) are: (a) loss of an important chunk of the user base by iOS and Android app developers, (b) For Apple increasing supply chain issues, decreased margins, and increased costs will have resulted if the production is shifted from China to anywhere else if the manufacturing of iOS devices is forbidden by Foxconn in retaliation to the government of China, (c) the dwindling fortunes of Apple will decrease further as the iPhone users in China will switch to other devices in retaliation, (d) compromised devices will be in the hands of 20% of the smartphone owners of the world who use Huawei phones, and last but not least, (e) a fifth of the user base will be lost by Android in the form of users of Huawei. Consequently, services will be pushed by Google no longer and the ad revenue associated will be lost by it.