News

USA vs. HUAWEI: Replacement of Chinese technology more expensive than expected

Huawei has been a thorn in the side of the USA for quite some time. After all, the land of unlimited opportunities sees the Chinese tech company as a “threat to national security”. Accordingly, the company from the Far East is also on the dreaded US embargo list. Among other things, this list states that technology from the giant corporation may not be used in the USA. Especially in the mobile networks of the USA, this sounds easier on paper than it is in practice. Removing Huawei’s technology there and replacing it with Western alternatives is several times more expensive than originally thought.

Embargo will also be expensive for the U.S.

So far, strictly speaking, only Huawei suffered from its place on the US embargo list. After all, this not only led to an import ban on the group’s products from the Far East. It was also virtually impossible to cooperate with Western companies, as they would otherwise have to pay high fines. Now, however, it seems that the USA will also have to reckon with horrendous costs. As part of the campaign against the partly state-owned company from the Middle Kingdom, it was also ordered that technology already installed by Huawei be removed and replaced. The Trump administration’s fear that espionage could possibly be carried out was too great.

The mobile providers in the USA complied with this order, but are now demanding high cost reimbursements. After all, they were granted just under USD 1.9 billion by the Federal Communications Commission (FCC). However, if you look at the final bill, costs of around 5.6 billion U.S. dollars were incurred. This means that the responsible telecommunications authority has made a huge miscalculation. After all, the financial resources currently available are just enough to approve one third of the applications submitted by the telecommunications companies.

A sad embargo anniversary

Huawei’s fall in the U.S. has been truly deep. Once considered a promising supplier of Android smartphones, the company is now dubbed only a threat to national security. This was almost ten years ago by now. Back in 2012, the USA decided that it no longer wanted to buy mobile technology from the Chinese tech company. Thus, Huawei was summarily excluded from the market. However, the government under US President Barack Obama at the time did not pass a corresponding law prohibiting the purchase of Chinese products. Thus, there were a few small providers that struck due to a very good value for money even despite the official sales ban for Huawei.

However, this changed with the presidency of Donald Trump. He issued a presidential decree that not only large but also small network operators have to do without Chinese technology. The reason for all this is still accusations against Huawei of working hand in hand with the Chinese government. Despite the lack of evidence, the current US President Joe Biden is of the same opinion. According to U.S. policy makers, China is said to be using Huawei as a Trojan horse to conduct espionage in the United States. The fact that the Chinese technology group could act as a major competitor against US companies in the field of 5G technology certainly plays at least a small role in the embargo.

Simon Lüthje

I am co-founder of this blog and am very interested in everything that has to do with technology, but I also like to play games. I was born in Hamburg, but now I live in Bad Segeberg.

Related Articles

Neue Antworten laden...

Avatar of Basic Tutorials
Basic Tutorials

Neues Mitglied

3,663 Beiträge 1,487 Likes

Huawei has been a thorn in the side of the USA for quite some time. After all, the land of unlimited opportunities sees the Chinese tech company as a „threat to national security“. Accordingly, the company from the Far East is also on the dreaded US embargo list. Among other things, this list states that … (Weiterlesen...)

Antworten Like

Back to top button