U.S. could face $11 billion revenue loss by banning Huawei

The United States could confront an $11 billion USD acquirement loss by banning U.Due south. companies from selling to Huawei components and parts.

U.S. President Donald Trump signed an executive order that bans whatsoever strange visitor from supplying U.S. companies if they pose a national security threat. The ban was appear alongside Trump declaring a national emergency regarding technology threats confronting America.

The ban not just would price the U.S. billions of dollars in potential revenue loss, but it would also disrupt the global supply chain.

CNN reported that in 2018, Huawei spent $70 billion worth to buy parts from 13,000 suppliers and of that $eleven billion was spent on U.S. suppliers. That included chipsets from Qualcomm and Broadcom, Microsoft software and Google's Android.

But now that Huawei, and whatsoever foreign visitor that is non licenced to buy or sell from exporters in the U.S., is barred from doing whatsoever business organization, information technology creates a potential loss.

"Both the visitor itself and the networks of Huawei customers around the earth [are at adventure], every bit the firm would be unable to upgrade software and conduct routine maintenance and hardware replacement," analysts from Eurasia Grouping wrote in a briefing.

That ways that customers using a Huawei smartphone might not be able to update their Android operating arrangement considering, equally the analysts noted, Huawei "does non appear to have a set up alternative."

Globally speaking, this ban ways strange companies that incorporate U.South. parts can't sell products to Huawei, Lawrence Ward, a partner at international law firm Dorsey & Whitney, said to CNN.

"This decision is the latest move in the campaign against Huawei, waged by the U.Due south. government for political reasons," Ken Hu, one of Huawei's rotating chairman, said in a memo.

"The visitor has known this could exist a possibility for many years…We take invested heavily and make full preparations in a variety of areas," he said.

Source: CNN

Source: https://mobilesyrup.com/2019/05/17/us-ban-huawei-11-billion-loss/

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