A monitor displays the logo for "Huawei" behind Secretary of State Mike Pompeo as he speaks during a news conference at the State Department in Washington, Wednesday, July 15, 2020. (AP Photo/Andrew Harnik, Pool) The United States has been trying for years to discourage countries from using network equipment from Chinese company Huawei.
For the first time in years, the United States is seeing progress in its relentless effort to persuade/force/cajole (it really depends on your viewpoint) countries against using networking equipment from the Chinese telecom giant Huawei . The UK’s recent decision to ban Huawei gear from its new 5G network and the government’s order to remove all existing equipment made by the company before 2027 is a huge win for the US government.
And now, following its violent border clash with China, India is also considering shunning Huawei. This would no doubt be a significant setback for the Shenzhen-based company.
READ MORE US-China tension creates opportunities Africa must seize
“The tide is turning against Huawei,” declared US Secretary of State Mike Pompeo last month in anticipation of July’s announcement by the British government.
But Pompeo’s excitement about the supposed demise of Huawei may be a tad premature.
READ MORE US EXIM: ‘We have a new mandate to take China on around the world’
First of all, the numbers are not on his side. Even under intense US pressure, slowing smartphone sales and, of course, the COVID-19 crisis around the world, Huawei still managed to beat last year’s first-half revenue by a respectable 13.1%.
Then, there’s Africa… and most likely much of the rest of the Global South, where the US messaging on Huawei is basically dead on arrival.
The article continues below Free download
Get your free PDF: Top 500 african companies 2019Your guide to Africa’s leading corporatesComplete the form for your free download of The Africa Report’s 2019 Exclusive Ranking of Africa’s top 500 companies from last year. Get your free PDF by completing the following form.Country * The State Department’s zero-sum, binary approach to the Huawei issue will probably never gain traction in Africa. While countries like Britain and Germany are wealthy enough to pull out the Huawei gear from their networks and replace it with equipment from Samsung, Ericsson or Nokia, that is not the case in developing countries.Not only is Huawei equipment typically more affordable than its South Korean and European competitors, but it also comes with generous […]
