Quote:
Originally Posted by mikemhg
Can you provide me any data in terms of the recent Trump policies and the adverse the measurable effect they've had to the manufacturing and tech sector in China (semiconductor tech, etc.)
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Quote:
Originally Posted by Traum
Unfortunately, coming up with measurable data that can show the adverse effect from the bans is difficult in a number of ways. First of all, although the initial executive order was signed in May 2019, extensions to the ban has occurred 3 times until April 2020 to allow more time for American businesses to make alternative arrangements. The extensions mean that throughout this period, Huawei was able to continue with its business in pretty much the same way as before.
Additionally, the extensions allowed Huawei to stockpile lots of critical components prior to the full ban. Because of these offset measures, Huawei's financials didn't really take any major hits in 2020. In fact, I seem to recall that one of the quarterly reports saw higher revenues than before.
But what happens going forward is interesting because the ban means Huawei's smart phone business has reach the end of the line.
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Here is an article from Oct 2020:
https://www.cnbc.com/2020/10/30/huaw...e-to-bite.html
- In the third quarter of 2020, Huawei shipped 51.7 million smartphones, down 23% year-on-year, according to a Canalys.
- Huawei lost its crown as the world’s biggest smartphone maker, after gaining the title in the second quarter of the year. Samsung overtook Huawei.
"... The U.S. has waged a campaign against Huawei as part of the broader trade war with China. Huawei is seen as one of China’s national champions and key to the country’s ambitions in next-generation technologies like 5G, the next-generation mobile networks that offer super-fast data speeds.
Washington has placed a number of sanctions on Huawei which are continuing to take their toll. Last year, Huawei was put on a U.S. blacklist known as the Entity List. This restricted American firms from doing business with the Chinese giant. It meant that Huawei was no longer allowed to use licensed Google Android software on its smartphones.
This is not a big deal in China where Google services are effectively blocked anyway. But in international markets, which are critical to Huawei’s growth plans, consumers are used to using Google apps. Huawei’s latest flagship smartphones do not have licensed Google Android and that’s hurting the company’s device sales.
Declines in international markets are continuing for Huawei, but the company also saw a 15% fall in shipments in China in the third quarter, according to another report by IDC published Thursday.
Further uncertainty around the future of Huawei’s smartphone business remains. In May, Washington amended a rule which aimed to cut Huawei off from critical chip supplies. Taiwanese firm TSMC, which manufactures Huawei’s smartphone chips, is no longer allowed to ship those components to the company. ..."