Trump Bans Huawei For Another One Year, The Chance For India To Thrive

It looks like Huawei will be banned from the US for another year, according to what Trump said, reported by Reuters.

Specifically, Trump used the International Emergency Economic Powers Act to extend the ban, which first became effective last May. At the time, the US President declared a national emergency allowing him to start the ban. The original order mentioned a risk of sabotage in communications, risks to the digital economy, the risk to infrastructure, and general national security risk. There wasn’t any update in the wording of this order with the extension, so the ban will likely remain the same for another year.

The ban will have significant impacts on many mobile companies, including Huawei as well as ZTE. Previously, Huawei responded to the ban by rolling out updates for its old phones instead of launching new devices in the US market. But this approach won’t work forever.

At the time the original ban was announced, the Chinese tech giant stated that:

“Restricting Huawei from doing business in the U.S. will not make the U.S. more secure or stronger; instead, this will only serve to limit the U.S. to inferior yet more expensive alternatives, leaving the U.S. lagging behind in 5G deployment.”

However, this seems to have no influence on the Trump administration based on what we’ve seen. As the US has banned Huawei from its market, investors in the country may have to switch to other countries, India for example since it has a large population like China and the labor cost is low too. It remains for all of us to see how this goes.

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