a new chapter of the trade war between the US and China has been opened the two
largest super powers on earth last week President Donald Trump signed an
executive order that gave him power to control the US trade and thus he poha
way one of the global smartphone leaders on the American government's blacklist
now no US company can trade with the Chinese company without first obtaining
government authorization the scenario is already very complicated to begin with
Google the company that owns the Android operating system which is the default
system of the vast majority of smartphones all around the world hooting
Huawei was forced to comply with the white house orders
thus Google had announced that Huawei phones but no longer have updates to the
Android operating system in Google applications such as YouTube Gmail and
Google Maps himself the largest microchip company in the world also one
of Huawei suppliers had also announced that ahead cut ties with the Chinese
company following orders from DC the impact only creates a deeper scar and
the trade war between Donald Trump and Xi Jinping and there's no sign of this
ever dying down soon both powers have imposed tariffs of between 15 and 25
percent making their products cost billions of dollars more in the market
the White House presidential veto is the new extreme that no administration had
ever went to before in this context DC never vetoed Samsung or Nokia the way
that has done to Huawei drop stated that Huawei who has strong ties that the
Chinese Communist Party is a Trojan horse and a critical national security
threat other parties believe that Trump has taken this step to prevent Apple
from bleeding to death as a result of Huawei's explosive growth in recent
years a couple of weeks ago always surpass Apple and the number of sales of
smartphones while Apple sees its profits and unit sales of iPhones decrease at
every consecutive quarter today we will see the consequences of this new
declaration of war within the biggest trade dispute of the last decades let's
begin
about a billion users will be affected by the abrupt decision from the White
House to ban Huawei from freely working with US companies repercussions of this
action could go very deep and it could even be considered as an act of
aggression towards China according to some Huawei was virtually unknown just a
decade ago today has become a highly respected company in its field the u.s.
accuses Beijing stating that Huawei has stolen American and European technology
however there are contradictory reports on both sides but the purpose of this
video is not to judge whether or not China is stealing technology because
both parties are accused of espionage and theft of patents what is clear is
that hallway has expanded to every corner of the globe as Apple once did
with its iPhone and computers China has gradually become a very rich economic
giant with close to a market of 1.3 billion potential customers but unlike
Europe in the US China is an authoritarian regime in a heavily
censored country where a large majority of young people never knew the
atrocities such as the massacre of Tiananmen Square and the concentration
camps in eastern China where thousands of Muslims are executed by orders from
Beijing China is a country where censorship and control of the media
prevail and in that sense when Google tried to expand in the country in the
2000s it had achieved it but the Chinese regime challenged its expansion Google
announced that it was being subjected to espionage and intimidation by Beijing
which was trying to take advantage of its computer systems the result Google
and all its entities were blocked from mainland China and to this day it still
remains the case neither Google nor YouTube nor any
affiliate companies operate in the largest market in the world and Google
was not the only victim there are thousands of companies and websites
banned by the Chinese government which is known as the Great Firewall of China
in short Beijing sets its conditions for anyone who wants to enter China and
sometimes the price to pay is espionage and censorship of their technologies
neither Facebook nor any other social networks such as whatsapp are allowed in
China for a long time China has been an important market for Apple and could not
enjoy losing access to such a valuable market and therefore it was willing to
sacrifice certain functionalities Apple began to see their profits and revenues
decrease in China partly due to the growth of the Chinese company Huawei
which is heavily promoted by the Chinese government in the country and abroad the
ongoing trade war between the US and China was a
originally caused by Trump with the tariffs that he imposed on China on its
exports Trump's executive power gives him the power of Commerce and under the
same power he has forced American companies to cut ties with Huawei under
the excuse of national security Google as the company it is has no
interest in cutting ties with one of its major trading partners Huawei but in
this case Google has to abide by the presidential order from the White House
the same goes for companies such as Intel Facebook and Microsoft these
companies will be forced to cut off any relationship with Huawei and as a result
the company could potentially be paralyzed there's a large part of its
components come from American companies such as Intel and Microsoft in the first
instance for example the latest smartphones will no longer utilize
Android and American companies such as Facebook Twitter and YouTube will no
longer be available in the case of their laptops for example Microsoft will be
forced to not provide more assistance the hallways operating system ie Windows
and it will also be left without the logistical support of their microchip
producer in this case Intel in the case of chips without Intel always a bit
paralyzed and in fact if they want to find another alternative it would be AMD
the problem is AMD is also American far away as well as hundreds of millions of
users and hundreds of other companies have been paralyzed due to Trump's
orders and many would consider this as an attack on free trade and the free
market in a way it is true that China is an authoritarian power that promotes
censorship and we could even say that they promote espionage but the u.s. is
not much better to give moral lessons when it is the number one country that
spy on the world that being said its censorship is also evident when dealing
with revealed state matters as was the case with Australian journalist Julian
Assange with the latest decision from the White House Huawei is paralyzed for
the short term medium term but as a matter of fact alway was already working
on developing its own operating system because they already foresaw that
something like this could happen the problem though is not just the operating
system it is also the electrical components that it uses as well as other
hardware and software that is mostly in the hands of American companies while we
will have to develop its own operating system apart from looking for different
software and hardware alternatives to American companies always alternatives
as a leader in Chinese technology is to entirely develop every single component
and only using its own technology so in other words it has to stop relying on
components or systems that are in the US but that in the short term is
highly unlikely another option would be to try it to
find non-american suppliers such as South Korea Samsung or European
technology it is very realistic to say that the consequence of this economic
embargo on huawei will greatly limit its growth projection the company plans to
dethrone Samsung this year as the company with the highest number of sales
but having to develop a new operating system and other components will impact
the time that it will take for hallway to achieve their goals now think of the
actual impact this has on consumers would you use a phone that couldn't use
whatsapp Facebook YouTube Google Twitter and Gmail probably not unless you are
willing to give up the vast majority of social networks the entrance of hallway
to the u.s. blacklist is one of the latest actions in order to stop hallways
expansion but this affects much more than just smartphones
it also affects new data technology such as 5g which has become a geopolitical
game all around the world in Europe Huawei has also been under attack for
their development of 5g the US government has already threatened its
allies with a stop of intelligence if governments accept Huawei developed 5g
technology in their country some governments such as Australia and New
Zealand have already given in to that pressure but recently London had decided
to allow hallway to develop the 5g networks evidently under the
surveillance of the British government that being said Washington has stated
that it would limit its intelligence with London but this will also be a loss
for the u.s. sense to stop sharing secret information with London will also
be harmful considering the geographic importance of
Britain to filter information between Russia the European Union and the u.s.
Germany has also allowed Huawei to develop the 5g network recently
Chancellor Merkel came to the defense of Huawei in view of Trump's executive
order Germany has stated that the current trade war between the US and
China is also harming European consumers after failed attempts at negotiations
China is seeing it's complicated position the United States has many
other options on the table China could very well do the same to the
US by banning Apple which would undoubtedly be an act of retaliation for
leaving Huawei without Google and Intel's technical support it is clear
that Huawei will be affected in the medium to long term reducing their
exponential growth that they have experienced recently Trump's executive
order will evidently discourage users from buying Huawei products since in the
future they may not have access to Google Apps and even Facebook or what
and even for laptops many will be discouraged due to the lack of support
from Intel chips the Windows operating system and Adobe programs both of these
countries depend a lot on each other but China depends on the u.s. slightly more
than the other way around in terms of exports China is a country that exports
a lot to the US 20 percent of China's exports go to American territory but the
u.s. exports only 10 percent to China in fact Mexico is its main commercial
partner on the other hand Trump wants to reduce the commercial balance of the US
a country that traditionally imports more than it exports especially from
China with close to 25 percent of imports coming from the Asian country
the US has a trade deficit of nearly 1 trillion dollars the largest deficit on
earth Trump has been trying to penalize the consumption of Chinese imports
imposing them with tariffs of between 15 to 25 percent in order to reduce the
American consumption of these products based on the tariffs more than seventy
billion dollars have been collected by the Treasury Department Trump has
boasted that the country has received billions of dollars from China
thanks to taxes but this is incorrect a part of the income from these taxes have
been paid by American citizens who have BA are consumed Chinese products
therefore the trade war between the two largest world powers and between their
largest tech companies has already claimed its first victims at the moment
if you already have a huawei the product is still usable but in the future these
products may not have security updates from Google and even though Huawei has
already insured system updates at the moment we don't know what will happen to
the Play Store for those who are thinking of buying a Huawei smartphone
in the future we will have to know that they might not have an updated operating
system like Android and you may not have access to the Google Play Store to
download applications alway has stated that will replace Android with their own
operating system but at the moment is still being developed and for now we
don't know what capacities that will have and we don't know if we can access
Google applications such as Maps YouTube and Gmail massively use applications
such as Facebook whatsapp and Instagram may also not be present thus a new
chapter of the trade war has been opened and we will have to wait and see for
what will happen next so what do you think of the trade war at this point do
you think it was reasonable for Trump to block Huawei from working with American
companies or do you think this was just an attempt to save Apple I hope you
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