Huawei's three-month reprieve from a US Entity List - effectively banning American companies from doing business with China's biggest tech company - is about to come to an end.
The National looks at the future of Huawei as Washington is expected to decide next week what comes next for doing business with the tech giant.
Why is August 19 an important date for Huawei?
The White House placed Huawei on a commerce blacklist on May 17, accusing the Chinese company of espionage and raising questions over the security of its 5G equipment. This ban immediately barred some of Huawei's biggest suppliers - such as Google, Intel, Qualcomm and Xilinx - from doing business with it. However, on May 21, President Donald Trump withdrew the ban - granting Huawei a three-month cushion after American tech stocks tanked. It allowed US companies to resume business with Huawei but the truce ends on Sunday, August 18.
What makes the ban potentially damaging to Huawei?
Huawei is one of the biggest buyers of US-made chips - used in making semiconductors for smartphones and other telecoms components.
Outside China, Huawei smartphones and laptops completely rely on Google’s Android and Microsoft’s Windows operating systems. Any disruption in the supply of hardware and software from American manufacturers will derail Huawei’s sales, as half of its revenue is generated outside its home market.
What is Huawei doing in response to US action?
Huawei rolled out its own operating system, an alternative to Google's Android called HarmonyOS, last week. For now, it is being used only in its smart TVs and is a "plan B" the company said it would prefer not to deploy further, preferring Google.
Huawei could also move away from US manufacturers and start buying components from South Korea’s Samsung and Mediatek of Taiwan. Samsung’s System LSI unit already provides mobile chips to Meizu, another Chinese smartphone manufacturer. Mediatek announced its 5G modem chips last December that will be available by 2020. To lessen its dependence on US components and software, Huawei has assigned as many as 10,000 developers to work across three shifts a day, 24/7.
What if Trump does not change his mind?
Matthew Kendall, chief telecoms analyst at The Economist Intelligence Unit, told The National, that blacklisting will place Huawei's future growth in "jeopardy" and will hit the company's bottom line "not only in the US but also in other markets".
“More concerted action from the US is only likely to add to pressure for other countries to adopt similarly punitive measures,” added Mr Kendall.
Even if the US decides to suspend the ban, the firm's reputation as a supplier is already compromised.
“Telecom companies that are preparing to shell out billions of dollars to build their 5G networks would have to think hard about signing deals with a company that from now on will be squarely in the US crosshairs,” wrote Kevin Allison, a director at Eurasia Group.
A possible bright spot for Huawei is Mr Trump's delay of tariffs on China until December 15 this year so that US shoppers won't be affected in the run-up to Christmas. He may take a similar tact with Huawei.
“We are doing this for the Christmas season, just in case some of the tariffs would have an impact on US consumers. So far, they’ve had virtually none,” the president said.
Can Huawei afford to lose Google?
Market experts say it will be an enormous task for Huawei to roll out HarmonyOS outside China.
“Scaling in China should be easier than the huge challenge of building an ecosystem to rival Android outside China,” said Neil Shah, research director at Hong Kong-headquartered research firm Counterpoint.
Building app stores in different countries along with localisation options, developer support, data protection guidelines and security scanning - all with huge overhead - will be a massive undertaking, he added.
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Killing of Qassem Suleimani
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
Where to submit a sample
Volunteers of all ages can submit DNA samples at centres across Abu Dhabi, including: Abu Dhabi National Exhibition Centre (Adnec), Biogenix Labs in Masdar City, NMC Royal Hospital in Khalifa City, NMC Royal Medical Centre, Abu Dhabi, NMC Royal Women's Hospital, Bareen International Hospital, Al Towayya in Al Ain, NMC Specialty Hospital, Al Ain
Company%20Profile
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The biog
Hometown: Cairo
Age: 37
Favourite TV series: The Handmaid’s Tale, Black Mirror
Favourite anime series: Death Note, One Piece and Hellsing
Favourite book: Designing Brand Identity, Fifth Edition
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
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The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
Results
6.30pm Madjani Stakes Rated Conditions (PA) I Dh160,000 I 1,900m I Winner: Mawahib, Tadhg O’Shea (jockey), Eric Lemartinel (trainer)
7.05pm Maiden Dh150,000 I 1,400m I Winner One Season, Antonio Fresu, Satish Seemar
7.40pm: Maiden Dh150,000 I 2,000m I Winner Street Of Dreams, Pat Dobbs, Doug Watson
8.15pm Dubai Creek Listed I Dh250,000 I 1,600m I Winner Heavy Metal, Royston Ffrench, Salem bin Ghadayer
8.50pm The Entisar Listed I Dh250,000 I 2,000m I Winner Etijaah, Dane O’Neill, Doug Watson
9.25pm The Garhoud Listed I Dh250,000 I 1,200m I Winner Muarrab, Dane O’Neill, Ali Rashid Al Raihe
10pm Handicap I Dh160,000 I 1,600m I Winner Sea Skimmer, Patrick Cosgrave, Helal Al Alawi
500 People from Gaza enter France
115 Special programme for artists
25 Evacuation of injured and sick
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Book%20Details
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Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
THE APPRENTICE
Director: Ali Abbasi
Starring: Sebastian Stan, Maria Bakalova, Jeremy Strong
Rating: 3/5
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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