It’s no news that the United States and China are at loggerheads over trade restrictions. Huawei’s rotating chairman, Ken Hu, does not expect the telecommunications and smartphone maker to be affected by the increasing trade tensions between the two countries. The countries are going back and forth with fines like two kids throwing mud at each other. Washington recently infuriated the Chinese by slapping a 25% tariff on $34 billion worth of goods from China last Friday. Beijing on the other hand retaliated by imposing the same tactic by imposing tariffs of the same worth on products from the U.S. Talk about tit for tat.
The United States is expected to levy an additional $16 billion worth of imports from China, but Hu believes that the company will not be affected by it. That’s quite an expectation considering the two-decade worth of problems that Huawei has faced with respect to trade with the United States. The U.S government is afraid of giving Huawei the market exposure it needs thanks to their alleged ties with the Chinese Government. The U.S Government has already made their concerns clear regarding Huawei’s hardware being used by the Chinese Government to spy on U.S citizens.
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Recently, ZTE was crippled after the United States Commerce department shut down their operations thanks to malpractices on the ormer’s side. The telecommunications provider has slapped with over a $1 billion fine with another $400 million that is to be put in an escrow account with the commerce department for a monitoring period of 10 years. ZTE’s business suffered drastically since it relied heavily on the U.S for hardware. That’s not the case with Huawei. The Chinese telecommunications provider hardly relies on the U.S for hardware and not a lot of its products are shipped there. So Mr Hu might be right about Huawei’s future.
