Are Huawei Phones Banned in the US?

After Samsung, Huawei is the world’s second largest phone manufacturer. At least that’s how it was in 2019. This company is a market leader in China as well as in some Asian and European countries. However, it’s very difficult to spot someone holding a Huawei phone in the United States.

Relations between Huawei and the American government are complicated and fractious. There are many factors involved, from safety concerns to market share. If you want to know whether Huawei phones are banned in the US, and the reasons why, keep reading this article.

What Happened?

Although this story started years ago, the situation got more serious in 2018. Let us remind you that Huawei entered the market as a manufacturer of cheap, low-quality phones. As such, it didn’t represent a threat for giants like Google and Apple. However, as time went by Huawei worked on improving the quality of its products.

Then, a couple of years ago, we witnessed a big scandal. Huawei was accused of spying and stealing competitors’ intellectual property. Although the leaders of Huawei denied it, the company wasn’t able to quell the controversy. The consequences could be best seen in the United States since Huawei had to withdraw from the market.

Counter-Measures

At the end of 2018, the United States forbid the federal government from doing business with Huawei. The following year, the rules got even stricter. The government prohibited all US companies to use communication technology from any company considered a national security threat.

Huawei was one of those companies, along with more than 70 subsidiaries. Since then, Huawei has been restricted from doing business with US companies. During the same year, Huawei was added to Entity List, a list of companies that aren’t allowed to purchase components from US companies.

The government announced that the measurements might be loosened, but that’s yet to be seen. Companies can ask for special permission that can allow them to do business with Huawei if they’ve got a good reason for it.

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Two Possible Reasons

There are two possible reasons that could explain the decision made by the US government. The first relates to national security concerns, the other to the economy and market. It’s difficult to know what the exact reason is if a combination of these two factors is a pretty good guess.

Safety Concerns

Naturally, the US government is concerned about the nation’s cybersecurity – that’s why they’ve adopted such strict measures. They believe that Huawei could steal data from individuals and the government itself. The scandal from 2018 has tarnished Huawei’s reputation.

Many experts from around the world state that we don’t have enough knowledge on the 5G wireless network and that’s why we should be cautious. This refers to other 5G networks as well, but Huawei is the one that sparked this debate. Experts are worried that the 5G network could enable listening to every phone call.

This is an especially big concern when it comes to the military. As we said, this hasn’t been confirmed yet, but the government wants to avoid it as potential consequences could be dangerous for the whole state. It’s suspected that China could use Huawei equipment to spy on other countries and get valuable data.

As the political situation becomes more serious, the government decided to do everything it could to prevent such scandals. Remember, in modern society data is the most valuable asset that one can have. That’s why they’re working hard to protect it.

Economic Concerns

Some people believe that the actual cause of this ban is strictly economic. We witnessed China’s economic growth impact upon the global market. In the next couple of years, the Chinese government plans to become a world leader when it comes to communication technology. Some countries are worried that this might harm their own economy.

Moreover, China is a serious competitor to the US when it comes to various fields, especially technology. It’s been one of the fastest-growing economies in the previous decade, and it isn’t letting up. Huawei is one of the most rapidly growing companies and competitors are clearly concerned.

The government is probably concerned that Huawei might gain in market share, harming companies like Google or Apple. Some officials state that people should buy goods and services produced in their own country, in order to sustain the country’s economy. Some people are even talking about an escalation in the Trade War between the US and China.

What About the Other Countries?

You may have heard that Huawei is banned in other countries. The truth is that some nations, including Australia and Japan, have blocked Huawei from 5G wireless network projects because there’s still not enough information about 5G itself. However, neither of these countries banned it from trading on their territory. The European Union suggests a less radical approach, believing that countries should limit Huawei, instead of completely banning it.

Wrap Up

As you can see, the situation is very complex and dependent on various factors. Today it’s very difficult to buy a Huawei phone in the United States. It’s hard to say what’s the real cause and it’s even harder to predict what’ll happen in the future.

What do you think about the whole situation? Do you think that the US concerns are justified? Feel free to share your thoughts in the comments section below.