Huawei’s American Dream

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The United States and China’s relationship has been on a tightrope for some time, which mainly has been showcased to the public eye through the ongoing trade war. Telecommunication equipment constitutes a very large portion of the many goods and services negatively impacted by this conflict, and this especially holds true for Huawei, China’s top tech firm. From the extradition of CFO Meng Wanzhou this February to its enlistment on the US entity list, the company has faced many impediments along its ambitious scheme of an American debut. 

Huawei’s plan was meticulous and grand: from nearly twenty years ago, the tech firm had already launched Futurewei, a research and development outpost solely dedicated to the US. Heavily investing into the long-term program allowed Huawei to undergo rapid growth in its size both locally and globally. This set the company as the exclusive holder of the newest technological advancements and as one of the few leading companies that develop 5G networks. It was even deemed as a runner-up competitor to Apple. 

As of September 2019, however, circumstances have only worsened for the American branch of the Chinese tech giant. With Meng still facing accusations regarding corruption and detrimental actions against the US, Futurewei holds almost zero significance in the country’s market. Not only that, Trump’s White House has been executing a campaign to American suppliers and buyers to pressure them from purchasing and selling the company’s telecom equipment for over a year. Futurewei offices are shutting down one by one, causing breaks in “valuable partnerships with American universities” as a result, according to the CNN.

Although sales in the United States make up an almost negligible amount of its net profit, Huawei had seen its entrance into the ever-flourishing US tech market as a “growth opportunity for its smartphone and IT business” according to Reuters. As the company struggles to establish its presence in the US, it stands before a two-way road: to halt or to persevere. Representatives expressed recently in an interview that they want to collaborate with US government officials to find a solution, but that it is challenging to find those willing to talk. Huawei’s dream of a solid American debut seems out of reach as of current status.