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Significance
This escalates Washington’s attempts to prevent Chinese leadership in 5G telecommunications and presents Beijing with a huge challenge. It threatens to accelerate the ‘decoupling’ of the telecommunications equipment industry.
Impacts
Huawei is one of the largest chip buyers in the world, so US chip manufacturers may face significant loss of income.
A race is underway between China’s efforts to upgrade indigenously and the growing obsolescence of its existing systems.
If Huawei cannot service infrastructure overseas, customers will turn to costlier alternatives and may blame Washington for this expense.
Beijing may be exercising restraint because of the US election, hoping a Biden presidency would relax some of the most aggressive measures.
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2020
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