Well well well, it seems like the Trump administration is changing its mind about cutting ties with Huawei after all.
In a globalised world where everything is interconnected, it is quite difficult to completely end manufacturing partnerships.
The scramble to stock up reserves on both sides goes to show how intertwined our economies are.
The Love-Hate Relationship
Under Trump’s quest to Make America Great Again (MAGA), he is trying to revamp the trade deals with longtime economic allies in a way that would benefit America better (in his perspective).
While China and America do not always see eye to eye about many issues like human rights and governance, the economy is the one thing that they cannot resist collaborating.
This is because the market share that each country offers cannot be compared.
The Trump Effect
This entire time, Trump has been calling Huawei a national threat that is “very dangerous”, he has been leading the Western suspicions towards Huawei due to its development in 5G mobile networks.
This resulted in companies like Intel, Google and Microsoft putting an end to their partnership with Huawei.
Since then we have seen the value of Huawei devices plummet. In Singapore, 2nd-hand handphone shops are no longer willing to buy Huawei phones as they deem it to be worth nothing.
A second chance?
In the latest addition to the US vs Huawei saga, as though changing his mind about what was said earlier, Trump has announced that Huawei could be part of the trade deal with China.
He said, “If we made a deal, I could imagine Huawei being possibly included in some form or some part of it.”
It now seems that he has taken a step back to create a loophole for Huawei in the trade deal. Or if you look at it from another angle, Huawei has become a bargaining chip for the trade war.
Is the US willing to compromise on its “safety concerns”? Or is it realising that it has made a grave mistake in attempting to corner Huawei?
China is not a country to be bullied. Mr Gao from the Commerce Ministry said in a statement that the US “should show sincerity and correct their wrong actions” if they wished to continue engaging in trade talks.
There are still three months before the ban completely take place, so if negotiations work out, the “Huawei saga” might merely be part of history.
Though you’ve got to admit: it has awakened the giant.
I mean, have you read about their new OS that could potentially be 60% faster than Android?
Sentiments
If there is one word that I can describe the Trump administration with, it would be ‘erratic’. That is because it can’t seem to make up its mind.
While it is sort of good news to hear that Huawei’s devices might still be of value, the damage has been done.
It can be very scary for Huawei users who will never know when their product will completely lose its value.
This will make potential Huawei users think long and hard before taking the plunge to own a Huawei device only to have it stripped of its functions again.
Here’s a simplified summary of the South Korea martial law that even a 5-year-old would understand:
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