“Google is complying with Trump’s administration banning of Huawei, the world’s second biggest smartphone manufacturer,” Jesus Diaz writes for Tom’s Guide. “If this isn’t remedied in the short term, it may open a divide that may prove fatal to the platform and also have a lasting effect on other companies, like Apple.”
“Google — as Qualcomm, Intel, Microsoft, Corning, even companies like Dolby and many others — are US-based companies bound to US law,” Diaz writes. “That means that this company has to stop any business with the Huawei: from selling them the glass for their screen to the OS for their computers and phones, to processors and modems, to apps and services like YouTube and Gmail.”
“One of the possible outcomes of this is that Huawei may decide to release their own operating system. This will count with the potential involvement of the Chinese government — and its economic resources —and the rest of the Chinese Android manufacturers. After the ZTE debacle and this, it’s clear that the Chinese can’t afford to depend on the US for a crucial part of its infrastructure and business development… it will definitely affect Google, developers and, by extension, every Android phone user. Developers will eventually be forced to maintain two codebases. And users will have to make a choice, potentially dividing Android between the US and the rest of the world,” Diaz writes. “[Retaliation by China might include] forbidding Apple products in China [and] also making Apple’s providers to stop having business with Apple. ‘This would not be without cost – Apple is a big employer inside China,’ Greengart says, ‘and has good relationships with the government.’ But all bets are off at this point.”
Read more in the full article here.
MacDailyNews Take: Android is already a fragmented morass and Google’s official version of Android isn’t “open” at all, obviously. Anything that hurts “Android,” a stolen product, if a Good Thing™ (as long as Apple skates on by in the long-term).
Hopefully, as the pressure is ratcheted up, both sides will return to the table ready to agree to a more balanced U.S-China trade deal.
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
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The US companies are going to suffer also. The ban against Huawei is baseless. So the people in China could be starting to boycott the companies in this side of the Pacific like a justification for an unfair decision made by the Potus.
Yep, you’re right… all Trumps fault, Huawei does nothing wrong at all, neither does China…. just ask Canada.
https://www.nytimes.com/2018/12/05/business/huawei-cfo-arrest-canada-extradition.html
“Both sides will return to the table”
I should hope not. I say maintain the tariffs and let us see what happens. I mean, prices going up on me would be a pain, but I’m really curious how much pain would China put their people through (especially since they don’t vote for their leader.)
If the end goal is to return to the table, then you shoulda stayed at the table while you’re there! 🙂 Several months/years of this doesn’t IMPROVE your chances of getting a deal. LOL
I’ve spent the past 25 years working in China and spending about 25% of my time there. You clearly have absolutely no idea how they think. They have been trained for decades to be nationalistic and sacrifice for China. That, combined with the fact that they DONT elect their leaders means that Xi has a lot more leeway and they will last a lot longer than the administration thinks they will. I also wouldn’t be surprised if the Chinese start taking it out on foreign companies. Expect to see mobs start burning down Apple Stores like they did to Japanese businesses in 2012 when there was the dispute over some islands in the Sea of Japan.
“Hopefully, as the pressure is ratcheted up, both sides will return to the table ready to agree to a more balanced U.S-China trade deal.”
Delusional and wishful thinking. As pressure gets ratcheted up, the likelihood of a hot war increases. The “trade war” is not about trade. It is about geopolitics.
If anybody is interested:
https://www.zerohedge.com/news/2019-05-20/markets-implications-are-enormous-trade-war-china-not-about-trade-about-geopolitics
For a long time I’ve wondered why China didn’t put all their efforts into an open source system like Linux. (Chinese companies must be spending far more on licensing windows then Microsoft spends on developing it.) They could potentially render the US totally irrelevant to computer and smartphone production if they got everyone off of the Windows/Android/iOS lock-in.
I’d always assumed that the US must be handing China something very valuable to prevent this from happening. But now with a trade war, the computing world may see a huge change.
Living where agriculture is the prime source of outside revenue (by far) I’m running short on patience/comfort with the game of chicken being played with import/export markets. Here’s the thing when it comes to complex economies…they are not perfect by any means and are always fluid — but they can’t be blown up. What good is it to set up a favorable situation months or years down the road if the businesses are decimated before you even get there? This isn’t a “strongest will survive” kind of deal when it comes to ag, either, because prices that don’t support input costs aren’t sustainable regardless of the size of the operation. But what you will see is fewer and fewer farms and greater control in corporate hands than already seen. People who are able to sustain losses longer will be the only ones left, and Wall Street begins to own Main Street more than it already does. It’s easy to have big balls in the negotiating room when you’re not personally affected by it. Utter chaos in the very interconnected tech realm will cause similar ripples as burgeoning companies that rely on their parts becoming a portion of a larger product will be the last to survive sea changes that cancel their orders. Sorry for the rant, it just feels like a mess.
Don’t worry, there will be plenty of relief and support… for Trump’s buddies.
Unlike Obama and his buddies, who openly screwed US workers, families and businesses?
Now run along and tell us all about Russians and collusion.
Don’t worry, midwest, Gina is going to pay hundreds of millions of dollers to the US, in tariffs… and also the senile orange REALLY cares about the little people and won’t forget them.
Everything is actually really tremendous. The farmers are winning so much, they will be tired of all the winning.
We used your article as a reference in our article: https://www.partisanissues.com/2019/06/the-rational-case-against-huawei/ Thank you.