Published: Sat, January 13, 2018
Culture | By Antonia Gonzales

Could Huawei smartphone deal fail spell full-blown Sino-US trade war?

Could Huawei smartphone deal fail spell full-blown Sino-US trade war?

"The consumers will select Huawei, the carriers will select Huawei".

According to The New York Times, the deal collapsed after a group of us lawmakers voiced concerns about a potential deal between Huawei and an American firm to sell products in the states in a letter to the Federal Communications Commission (FCC).

Much like with the United Kingdom market, the only version of the device that will be sold will be the Mate 10 Pro and the Porsche-branded variant. In it, concerns were raised over the major USA telecommunications carrier's collaboration with Huawei.

As for why AT&T dropped out of the deal, the reasons were reported to be somewhat controversial. The Huawei Mate 10 Pro has also been voted as phone of the year by Android 2017.

AT&T has been pressed to give up the deal after 18 US Senate and US Intelligence Committee members have signed a letter to regulators expressing concerns about Chinese companies' engagement in the US telecommunications sector. Censorship of various United States platforms - think Twitter, Facebook and Google - also helped to provide a useful vacuum for local players to thrive.

Huawei might still decide to cancel its Super Bowl commercial as things have not been worked out as planned for the launch of the Huawei Mate 10 Pro.

"The US market is a unique challenge for Huawei, and although Huawei Mate 10 Pro will not be sold by US operators, we remain committed to this market now and in the future", says the official statement of Huawei.

The mounting pressure from lawmakers was likely the most significant contributing factor to the deals falling through with the country's two largest carriers, according to one West Coast-based solution provider executive that asked not to be named.

Huawei is the fourth-biggest smartphone maker globally because of its massive popularity in Asia, according to IDC. But it has never managed to crack the USA, and the firm will have to rethink its expansion plans after this latest blow. Wonder Woman was one of the highest grossing movies in the US past year and Gal Gadot's performance was appreciated by critics and audiences alike.

While the U.S. government continues to be wary of Huawei's supposed ties to the Chinese government, it apparently has no objections to ZTE's practices.

Back in 2012, when Huawei was better known for making broadband equipment, the U.S. warned that the Chinese government may be using the firm's kit to spy on foreign countries.

A representative of Huawei said on Thursday that they believe the move to protect their intellectual property rights can help promote the healthy and sustained development of the science and technology industry.

The bill introduced this week would prohibit the federal government "from using or contracting with an entity that uses" telecommunications equipment or services from by Huawei or ZTE, or any of their subsidiaries.

Like this: