So I predicted the US vs. China trade war and the Huawei controversy had no end in sight. I appear to be right. Because China threatens blacklist over Huawei.
So most of you know, the US pretty much banned Huawei from doing any business in this country. But now, China seems ready to retaliate. According to Gao Feng, a China’s commerce spokesperson, they’re putting a list together. This list includes any company, or nation, that hinders business with Chinese companies. Feng calls this list ‘unreliable entities’. This all stems for the Huawei controversies. However, within 90 days or go, Google can still aid Huawei. But that’s only for emergency services.
So what does any of this have to do with IT service? Well, Google, Intel, and other Silicon Valley giants are either limiting or outright cutting off ties with Huawei. Furthermore, Huawei leaders say this stoppage of business with US companies will hinder business. They also say it damages their reputation. So far, the US imposed a $200 billion tariff on Chinese goods. In response to this, they expect China to pose a $60 billion tariff on US goods. That tariff could already be in the works. And this could be just the beginning.
Because now, Huawei is taking this to the courtroom. They claim what the US is doing is unconstitutional. But let’s get back to this blacklist. We don’t know who is on it yet. But you can best believe some of the biggest IT companies are, like the Google’s, the Amazon’s, the Intel’s, the Microsoft’s. If they do this, then this will have a huge impact on the American IT support industry. I’m not excusing Huawei by any means, nor am I in support of the way China does business. In fact, I don’t approve of it. But China has the world’s 2nd largest economy. So if China threatens blacklist, then where do we go from here?