Case Study

“HOW HUAWEI HANDLED

THE US EXPORT BAN”

SUBMITTED BY
RICA P. PASON | BSBA 4E

SUBMITTED TO
ELIZA M. SAMONTE

1|P a g e
INTRODUCTION

Huawei is a multinational company which specializes in producing hardware covering all sorts

from smartphones to computer processors to Wi-Fi modems, they are also leading in the revolution for

5G Service development. They are selling their computer electronics worldwide and one of their top

market is the US. For the past couple of months now, Huawei has been battling the US, mainly the

President of the United States Donald Trump as he is ordering an export ban for Huawei products as well

as the US companies being prohibited to have partnership deal with the Chinese company.

This actions of the states will surely give a blow to the company mainly because Huawei is in partnership

with American Companies for some of their products, Huawei uses American software for their hardware.

For instance, the smartphones Huawei produces are using Android as its operating system.

Since Huawei trade with American companies had been ceased they will be left without an operating

system with their devices. In effect of this trade crisis, Huawei had been pushed on the verge of a fall.

Customers and clients are worried that they may not able to update their Huawei devices, which is

definitely a thing to worry about.

HUAWEI LOSING FRIENDS

In line with US President Trump’s ban on Huawei products, Huawei have lost some of its

partners and friends in the business. Some of them are as follows.

Google – Huawei smartphones are using Android operating system which is owned by Google, with the

ban implementation, Google will stop allowing Huawei to use the operating system on their devices, the

updates on Huawei Devices which currently has Android operating system will also be ceased, with this

big blow, Huawei seems unbothered as they already anticipated a move like it, so they started developing

their own operating system few years back and now they are ready to unleash their own weapon.

2|P a g e
Microsoft – Huawei MateBook series, Huawei’s own version of Mac from apple uses Windows as its

operating system, the ban triggers Microsoft to stop giving access to Huawei in using the Windows

operating system. Likewise, Huawei is also prepared with this since they also engineered and started

development of their own operating system.

Intel, Qualcomm and ARM – These companies are major companies in chip production, in line

“complying with all of the latest regulations set forth by the U.S. government” these companies has cut

ties with Huawei in providing chips for their devices which leaves a big hole in Huawei production. These

seems to be a bigger blow, as Huawei needs to seek help to cover the hole for them.

OTHERS COUNTRIES JUMPING INTO BANDWAGON

Aside from the trade war with the US, other countries such as the United Kingdom and Japan has

jump in to the trade war, in the interest to distance themselves with the Chinese company, the UK and

Japan carriers such has Vodafone and EE have stopped putting Huawei devices from being lined with

their networks. They feel it’s best to distance themselves with Huawei to avoid conflict with US and the

US companies such as Google, which owns Google play. This puts more pressure on Huawei but since

rivals are rising, Huawei also gets the support from its people, Chinese have stopped using American

made products such as the IPhone from apple. This provides a sigh of refreshment to Huawei since they

know they’re not alone in this battle.

HUAWEI FIGHTS BACK

With the ban hitting them so bad, Huawei has fight back on legal way. The company has sued the

US government citing serious legal issues. In the meantime, Huawei shows they are beyond ready for this

and that their customers do not need to worry because they have the 26 letters of the alphabet for their

back up plans with how they have respond to the progression of the ban.

3|P a g e