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Trump administration sanctions against Huawei have begun to bite even though their dimensions remain unclear. U.S. companies that supply the Chinese tech powerhouse with computer chips face a drop in sales, and Huawei's smartphone sales could get decimated with the anticipated loss of Google's popular software and services.
The U.S. move escalates trade-war tensions with Beijing, but also risks making China more self-sufficient over time.
Look - Dispute
Here's a look at what's behind the dispute and what it means.
WHAT'S THIS ABOUT?
Week - US - Commerce - Department - Huawei
Last week, the U.S. Commerce Department placed Huawei on its so-called Entity List , effectively barring U.S. firms from selling it technology without government approval.
Google said it would continue to support existing Huawei smartphones but future devices won't have its flagship apps and services, including maps, Gmail and search. Only basic services would be available, making Huawei phones less desirable. Separately, Huawei is the world's leading provider of networking equipment, but it relies on U.S. components including computer chips. About a third of Huawei's suppliers are American.
PUNISH - HUAWEI
WHY PUNISH HUAWEI?
The U.S. defense and intelligence communities have long accused Huawei of being an untrustworthy agent of Beijing's repressive rulers—though without providing evidence. The U.S. government's sanctions are widely seen as a means of pressuring reluctant allies in Europe to exclude Huawei equipment from their next-generation wireless networks. Washington says it's a question of national security and punishment of Huawei for skirting sanctions against Iran, but the backdrop is a struggle for economic and technological dominance.
Politics - President - Donald - Trump - Trade
The politics of President Donald Trump's escalating ****-for-tat trade war have co-opted a longstanding policy goal of stemming state-backed Chinese cyber theft of trade and military secrets. Commerce Secretary Wilbur Ross said last week that the sanctions on Huawei have nothing to do with the trade war and could be revoked if Huawei's behavior were to change.
Analysts predict consumers will abandon Huawei...
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