How Huawei became a liability for China amid COVID-19 crisis

Edited By: Palki Sharma WION
New Delhi, India Published: May 26, 2020, 08.01 PM(IST)

File Photo: Huawei logo Photograph:( Reuters )

Story highlights

The world has figured out that the perfect way to punish Beijing which is by blocking Huawei. 

Tech giant Huawei which was once considered a ticket to China's global supremacy has now become its biggest liability.

Prior to the coronavirus outbreak, the world's opinion regarding the brand was divided. It was being considered as the biggest player while the world was preparing for the 5G network.

The United States tried very hard to block it and to keep it away from lucrative international contracts but had limited success.

However, the tables have turned after the coronavirus pandemic because the momentum is against China and by association, against Huawei. The world has figured out the perfect way to punish Beijing is by blocking Huawei. 

The United States has imposed strict bans on the company by making moves to block global chip makers from supplying to the company.

 While the ban was introduced last year, the rules have been tightened and made more effective recently. 
 
Chip makers that use equipment or technology from America are not allowed to sell to Huawei.  It is a serious blow to the brand because the chips are the building blocks of modern tech supply chains and no computing device can be manufactured without them.  
 
When the ban was announced, Huawei immediately slammed America for its decision.

On the suggestion of the US, now even Britain is reconsidering not granting the brand entry into its country.

British Prime Minister Boris Johnson's government may ditch the Chinese company as it is planning to end its dependence on it. The British national cyber security centre has launched a probe against the company as well.

Meanwhile, Canadian Prime Minister Justin Trudeau is also having second thoughts about the company. If these nations go forward and ban Huawei, then there is a huge possibility that others might follow their footsteps.

It appears that the company's rocky path is about to get tougher in the difficult times that lie ahead.
 

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