Trade war between the US and China continues. From side USA in addition, there is pressure from other third parties not to cooperate with Huawei. As is well known, Chinese Huawei is a leader in the development and distribution of 5G networks. Currently, the United Kingdom has begun to block the construction of the 5G network, just under pressure from the United States.
Great Britain: Pressure from the USA
Huawei is currently literally saving its existence due to the trade war, which is still active between the US and China. The Chinese manufacturer is now receiving another restriction, this time from the United Kingdom.
Following a meeting of the British National Security Council, the British government issued an announcement banning Huawei from distributing their 5G networks. However, this is not a day-to-day decision, as so far this government has been indifferent to Chinese society. However, the new decision probably comes after pressure from the US.
As a reminder, just a few months ago, the British government announced the approval for this company in the construction of 5G infrastructure. At that time, it was a really big victory for the Chinese manufacturer. Today, however, the situation is different and the Chinese producer certainly cannot rejoice.
The meeting at which this decision was taken was chaired by British Prime Minister Boris Johnson. As a result, all Huawei equipment will be phased out of the UK network.
British operators then have seven years to completely remove all equipment of the brand from their network. In addition, none of these mobile operators can purchase the Chinese manufacturer's equipment after 31 December 2020.
Huawei: Summary of the decision of the meeting
- The purchase of all Huawei devices for 5G technology is only possible until 31 December 2020.
- Not all existing Huawei devices may be located in the UK's 5G network until the end of 2027.
- Those who choose to use Huawei devices until 2027 must not have their devices in sensitive core parts of the 5G network.
- A statement from Secretary Oliver Dowden states: "Until the next election, we will have an irreversible path in place by law to completely remove Huawei devices from our 5G network."
At present, it is clear that the UK market is a big loss. The Chinese producer will thus have to return to the beginning. To expand its portfolio in 5G technologies, it will need to focus on other available markets.