The embargo has not only affected Huawei, a series of US technology companies, and many countries in the world also suffered the same fate.
A series of partners have turned their back on Huawei
Around mid-May, shortly after issuing the embargo, a mass of US technology companies and many partners around the world turned away Huawei. In succession, the names such as Google, Microsoft, Intel, Qualcomm, Xilinx, and Broadcom – all announced to follow the US government’s orders. They will stop supplying components and technology to Huawei. Then, other technology companies such as Germany’s Infineon Technologies or Japan’s Toshiba also informed to pause cooperating with Chinese giant.
Huawei smartphone sales seriously decline
At the beginning of June, SCMP reported that Foxconn stopped some of Huawei’s phone production lines. The given reason is Chinese technology company have cut down many orders of new devices. Marketing and sales managers of this technology giant predict Huawei smartphone sales in 2019 will drop by 40-60 million units. In addition, when talking to CNBC, Richard Yu, Huawei’s director of consumer business, said the company had decided to indefinitely postpone the launch of a new laptop in Matebook line.
Stock prices plunged; forecasting the revenue of many US companies will plummet
As soon as the embargo issued, the stock price of many US big technology guys has continuously tanked. In the trading on May 20, stocks of Apple and the Huawei’s chip manufacturing partners in Europe – such as Infineon Technologies, AMS, and STMicroelectronics – all fell to the “red floor” situation with the corresponding level of 2.5%, 3.4%, 4%, and 4.6%. In June, Broadcom Inc – the US-based chip manufacturing group – gave their forecast of 2019 revenue falling by $ 2 billion due to the US-China trade war. Broadcom shares lost 8.6% of the value on the share market, equivalenting to $ 9 billion.
Apple also becomes a victim
US-China trade tensions escalated, together with the ban from Google to Huawei, causing Chinese netizens to raise the tide of “boycotting Apple.” This is the same as a way to retaliate for China technology industry. A series of anti-Apple messages were shared by the Chinese networking community on Weibo. According to the Nikkei Asian Review, this tide of objection began when Huawei Chief Financial Officer, Ms. Meng WanZhou, was captured in Canada as the requirement of US prosecutors.
Apple partners are struggling to find a way to bring production lines out of China
At the end of April, Terry Gou, Chairman of Foxconn Technology Group, said the company would mass-produce iPhones in India this year to avoid depending on Chinese factories. Besides, at the end of May, VentureBeat reported that another Apple partner, Pegatron, will move the factory to Indonesia to reduce the influence of US-China trade tension.
A series of companies closed factories in China
In mid-June, Samsung said it was preparing to close its last factory in China. Shortly after, a series of names such as Hyundai Motor, Kia Motors, and LG Electronics also announced that they are considering on retreating from China. Hyundai Motor informed halting of production at the factory near Beijing. In the meanwhile, LG Electronics said it had moved all exported air-conditioner production lines to the US market from its factory in Zhejiang province to Korea.
The tide of boycotting American goods and services
On May 13, the Global Times published an editorial on calling Chinese people to actuate a “people’s warfare” against the US. And the tide of a boycott to US goods and services has begun to appear in this billion-people nation. In an internal announcement, Jinggang Mechanical Registration Station, Jiangsu Province issued a ban on employees relating to use American-origin products. It includes the ban on using iPhone, driving American car brands, eating at American fast food chains,… This story quickly spread on Chinese social networks and received a response from the online community.
Extinguishing the returning to China hope of Google
Google left China in 2010, but this searching giant is always trying to return to this potential market. The firm even secretly built the Dragonfly tools reserving for China. However, the embargo from Mr. Donald Trump forced Google to stop co-operating, stop allowing Huawei to use Android and its enclosed services. That makes the relationship between Google and the Chinese government keep on widening.
Damaging to 5G network infrastructure
Huawei has built a 4G network infrastructure for many large network operators in Europe and elsewhere in the world. That makes it easier for those countries to switch to 5G quickly and cheaper. According to GSMA, network operators in Europe if not continuing to use Huawei’s devices will have to suffer huge losses. This amount up to $ 62 billion, concurrency delaying the 5G deployment about 18 months.