The North American market is getting harder and harder for Huawei, and this time it is not because of Trump’s tariff war or because of the lack of collaboration from the operators.
The US Department of Justice has just opened an investigation into infringements related to the possible business of the company in Iran.
Although it is only the first step of an investigation that will extend over time, it is undeniable that the news maintains parallels with the recent case of another Chinese company, ZTE. The consequences of the latter case could be disastrous for your business, as they reported in a recent statement.
Huawei is the third largest mobile manufacturer in the world and one of the major international powers as a manufacturer of mobile infrastructure. Its scope has not been an impediment for the Western world has been questioning its integrity and security on many fronts in recent months.
The US intelligence agencies put the finger on Huwaei last February when they recommended avoiding their products.
NEITHER FBI, NSA or CIA rely on the Chinese government that ties, in short, all the business initiatives of the country that can accumulate or offer information to its population, especially when it comes to technology companies.
At the moment there are many details to be confirmed from this investigation to Huawei, including the exact accusation of justice in the United States.
The country’s export law prevents any company or government that wants to continue operating in its national market to trade with countries that are under sanctions, such as Iran or North Korea.
Although it is still too early to venture anything, one of the consequences for Huawei would be to follow the footsteps of ZTE: fines payments, sanctions and, ultimately, the prohibition of doing any kind of business on US soil, whether they are exports of their terminals and businesses or imports of the country’s products. In ZTE they have already tasted the bitter taste of that punishment, and it is not trivial.
The rumors suggested that the Chinese company had already decided to forget the North American market to prioritize others and, if nothing changes, it seems that they will have no choice.
Institutions, operators, governments and, now, the Department of Justice. It seems that the United States has also decided not to do business with Huawei.
We will have to wait to see how the investigation develops and if it finally formalizes an accusation.