Aug 25, 2020
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HUAWEI BAN NEWS: THE USA COLLABORATE ON 5G

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Some concessions to American companies, but it is not an opening towards the Chinese

A curious novelty in the context of the notorious Huawei Ban : the United States now allow American companies to collaborate with the Chinese for 5G.

It is not a change of course, nor a change in the policy that has put Huawei in difficulty in the last year, on the contrary it is a way to prevent the biggest damage in this whole affair from falling on American companies, because this is the scenario that is taking shape on the horizon.

Huawei had no market in the US, so the blockade imposed by Trump did not have particular effects in that area of ​​the world; the losses in Europe were offset by the dizzying growth in China, which brought Huawei to the first place in the world in April.

In practice, the Chinese company has shifted its weight to the world, changing the balance of its revenues, but in principle it has not (for now) suffered the violent backlash that many expected.

new Huawei Ban
Of course, in Europe he contracted his shares, but he made up for it at home. We do not know how long this situation can hold up, but certainly at this moment the worst companies are likely to suffer the worst damage, due to the absurdity.

Google does not collect royalties on smartphones, the suppliers of the various components have the prospect of being cut off from the smartphone production chain, while those that can sell 5G technologies have been put “on standby” by the Chinese, fearing to see the activities slowed down or damaged in this context of uncertainty.

The result is that American companies could be ousted from the creation of many 5G networks, those built by Huawei in many countries of the world.

new Huawei Ban
That’s why the American Commerce Department has allowed home businesses to resume contacts with Huawei for strategic collaborations in this sector.

We have to understand whether the Chinese will now want to take advantage of this option, or continue on the path of independence from American supplies, to avoid risks tomorrow.

It all depends on what kind of patents are in the hands of U.S. companies right now.

There is not much information about what will change in practice, but it seems that American companies will only be allowed to exchange information and interact with one another for building technology standards.

Nothing changes on the other fronts, but it is not said that this is a first signal sent to the other part of the world, with potential developments that today are difficult to predict.

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