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US-China Tech war is all about?

All you need to know what’s happening in the tech industry explicitly tech war between the US & China. The future of Huawei, Samsung and Apple will be discussed. Almost 16 days ago Trump signed an executive order and put Huawei and other 60 affiliated companies in the black list and restrict all US companies who have trade relations with Chinese companies will have to seek permission before trading with any Chinese company present in the list. The reason of this executive order is the US considers them a National Security threat for themselves.

Whats its all about tech war?

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The Trump arrows towards Huawei Tech, one of China’s tech champions, by signing an executive order that national security is not compromised in US telecoms infrastructure, while simultaneously reining back China’s dominance in next-generation 5G wireless networks.

Discussion among Huawei and US government is underway to make some way out of the current crises but for instances, no one has a clue where the crazy bull gets hooked.

Designed by Apple in California. Assembled in China. This familiar line on the back of iPhones has summed up the world order for the past two decades: American innovation married with low-cost Chinese manufacturing to deliver cheap, quality products for the world.

Huawei is a Chinese smartphone country that earns 50% of the revenue from Chinese users and half of the remaining from the rest of the world. Huawei smartphone manufacturing plants are in China but it buys hardware parts and some software from US companies. Huawei with the intention to become a global leader in the smartphone industry has recently crossed Apple in sales and chase Samsung.

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Can you imagine a Smartphone without Google Play Store, YouTube, Gmail, Facebook, and What’s App? Obviously, you are not Chinese at all who are surviving without all these apps and using their own which may be excellent with other perspectives.

Keeping this Executive order in view Google realized about current Huawei users and their support services order 90 days’ relief to Huawei company. So in 90 days Huawei either has to bring in their own apps or would ask global users to be like Chinese.

Moving forward Apple CEO Tim Cook must sound some loud ringing bells as he has always been pro Chinese when it comes to Chinese manufacturing skills set. He confessed a couple of times in his interview that he is impressed with the skill set and economical rates of Chinese labor. He said you get everything under one roof and cheap rates which saves time. So he must be under extreme stress about the Apple future.

However, the most elated and beneficiary person, for now, is Samsung CEO as he is observing tech giants limits access for users and he is expecting that traffic towards Samsung.

The major reason behind this is something most of the people may not perceive and maybe this tech war is for a shorter period of time. Tech users are soon going to have better technology than 4G and the US does not want China to take lead in launching 5G in the world before the US does. Its all about 5G technology bone that is stuck in the neck.

So an overview of the tech war Is, it’s not a one-sided match in which the US restricts China smartphone company and it won’t be affected, Trump administration even wants Apple to get back there manufacturing in the US but Tim Cook does not agree. Well, they have a bilateral trade relation and if trade among China and the US gets stuck anywhere in between it will open a space for Samsung and new payers to jump in. So all eyes on 90 days and we will see where and how negotiations get settle.

 

 

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