In 2019, the US imposed an embargo on Huawei, which still has very serious consequences for the smartphone market. And as the Chinese brand appears to be preparing for a major comeback, we tried to look back on these four eventful years.
The case of Huawei against the USA // Source: Frandroid
Embargo, espionage and geopolitical tensions… Few stories are as incredible as the battle between Huawei and the United States. Especially when the series has had such serious consequences over so many years (and it still hasn’t ended)! It really has all the ingredients of an incredible story.
However, we must admit that it can be difficult to navigate the multitude of consecutive events. Frandroid therefore decided to retrace this history to see it a little more clearly. Especially since there is more and more talk of Huawei’s strong comeback on the smartphone market. Therefore, it is important to understand any issues.
Our video summary of the Huawei affair
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The shock: Huawei is deprived of the Play Store and Google applications
Let’s remember the basis of this matter. More than four years ago, on May 19, 2019, the first information emerged: President Donald Trump’s government had put Huawei on a blacklist. The company would no longer have the right to work with American companies. There is still uncertainty at the moment, but everything indicates that the Chinese brand’s smartphones can no longer be pre-installed with the Play Store or Google applications.
However, these are essential elements of the Android experience (outside China). Even if the operating system is open source, it is the Mountain View company that develops it and does everything to put its stamp on it. In other words, a brand of Android smartphones that can no longer benefit from the Google ecosystem is bound to offer a significantly worse user experience.
The Huawei Mate 30 Pro was launched in 2019 // Source: Frandroid
That is unknown. The next day, May 20, 2019, the decision was confirmed. Huawei loses its Android license from Google. While the smartphones that the brand – and Honor, then a subsidiary of the group – were already marketing immediately suffer from a major handicap, the new models immediately have a major handicap: neither Play Store, nor Gmail, nor YouTube.
Additionally, many third-party applications that use Google services or tools become unusable or nearly unusable. Example: Pokémon Go, which is not playable, or Netflix, where HD quality for videos is not available.
The beginnings: the accusations from the USA
This American sanction against Huawei is no coincidence. Rather, it highlights an inexorable rise in tensions between the Chinese giant and the United States. Since the beginning of 2018, American intelligence agencies have expressed great concern about Huawei. The CIA, NSA and FBI accused the group of carrying out espionage operations on behalf of China.
Shortly afterwards, the country’s authorities made the sale of Huawei smartphones in the USA almost impossible and the use of the company’s devices was very restricted.
Huawei’s flagship store in Shenzhen // Source: Frandroid
In this context, it should be noted that the suspicions of American intelligence mainly relate to Huawei’s telecommunications infrastructure. The latter is in fact a major player in the industry, both in 4G and 5G. So it would be the antennas that would serve as spying tools. Obviously, the general public will mostly remember the impact that affects them more directly on smartphones.
The context: Washington versus Beijing
This American distrust of Huawei must also be placed in a more global context. It will not be lost on anyone that two superpowers stand out in the global geopolitical game: the United States and China. However, competition between the two countries has intensified over the years, on an economic, military, diplomatic and technological level.
As far as smartphones are concerned, 2018 is a particularly good year for Huawei, which has temporarily been in second place in the world rankings, neglecting Apple, the American market leader. It would be completely wrong to summarize the rationale for the embargo as simple competition between the two countries and the two brands, but this inevitably adds fuel to the fire.
The consequences: the decline of Huawei
Paradoxically, the American embargo primarily affects Europe. In fact, Huawei is betting heavily on its international development on the Old Continent. In China, users have long been used to the Android experience without Google, which is banned there. The brand had just begun its launch in the United States when the rug was pulled out from under it.
Huawei P40 // Source: Frandroid
On the other hand, Europe was a very promising market for Huawei. The manufacturer has therefore been trying for a long time to persevere by multiplying tricks and doubling its ingenuity to compensate for the lack of Google services. Vain. For the general public, the user experience was too exotic and too restrictive to continue buying or recommending smartphones.
In 2020, the embargo was further tightened by preventing foreign companies from supplying Huawei with components based on American technologies. This significantly affects the Chinese group’s production lines and cannot equip its phones with 5G-compatible chips. It’s a shame for a telecommunications giant.
Huawei’s flagship store in Shenzhen // Source: Frandroid
Result: Huawei is experiencing an inevitable decline in Europe, but also in China. This situation will even lead the group to admit that “[sa]Strategy is survival.”
The return: Huawei is looking up again
Currently the situation for Huawei is obviously catastrophic and seems to have no prospects. However, the giant doesn’t give up. The group is launching its own operating system, HarmonyOS, which is used primarily in China, and is separating from its subsidiary Honor (which is thus regaining Google services).
However, the response will begin to take shape, especially in 2023. In order to circumvent the American embargo, the company says it managed to replace up to 13,000 components with the help of Chinese partners and technologies. We also learn that Huawei has actually set up a secret network of factories to procure supplies at its own discretion.
Huawei Mate 60 Pro // Source: Frandroid
At the start of the school year, the release of the Mate 60 Pro is attracting everyone’s attention. This high-end smartphone launched in China is actually 5G compatible. Something that seemed impossible with American sanctions. This immediately raises suspicion: How could Huawei achieve such a feat without violating the embargo?
In China, Huawei observes an 83% increase in smartphone sales in October 2023 compared to the same period in 2022 // Source: Counterpoint Research via ITHome
No new sanctions have been imposed so far and Huawei in particular seems to have acted very wisely. And the brand once again has reason to smile: its Mate 60 Pro is very successful in China.
The sequel: a story that is far from over
The US embargo against Huawei has already lasted four years and is expected to continue. But in the early days the balance of power seemed to clearly shift in Uncle Sam’s favor, and there are increasing signs of a comeback for the Chinese company.
In the streets of Shanghai… Huawei posters everywhere!
To the point where we no longer wonder when Huawei will give up and give up. Rather, we’re trying to figure out whether the brand is content to stay in its home market of China, or whether it’s fully considering a new breakthrough abroad. Don’t let fans get upset, the embargo remains a major obstacle to the manufacturer’s ambitions and we assume that the United States is still monitoring the company very closely.
Whatever happens, it’s certain that what happens next will be just as incredible.
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