The United State government’s ban over Chinese tech giant Huawei some months ago was in itself a huge move. But, last week, the telecom company was blacklisted by the authorities. No business in the U.S. will be allowed to transact with the Chinese telecom giant according to the provisions of the next move. However, it now appears that the blacklisting could backfire on the U.S.
According to several reports, it has emerged that the smaller telecom companies in the United States like Union Wireless and Eastern Oregon Telecom among others will not need to pay significantly more for telecom equipment, now that Huawei has been blacklisted.
Can They Compete?
In this regard, it is necessary to keep in mind that these companies are not as well funded as some of the largest companies and the costs are almost certain to be passed on to the end consumers. Chen Lifang, who is one of the directors of Huawei’s board, laid bare these concerns in an article in the influential New York Times.
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The U.S. has accused Huawei’s equipment of being a vehicle for Chinese spying and although the company has strenuously denied the allegations, no solid proof has yet been provided by the Americans authorities.
Lifeng also went on to stated that the ban and blacklisting of Huawei will have much bigger consequences for American citizens that simply higher broadband costs. It is a well-known fact that plenty of U.S. companies do business with Huawei and if they are barred from doing so, then they will lose a significant chunk of their revenues. In the end, it could lead to significant job losses.
The move to blacklist Huawei has not been well received by the stock markets. Huawei’s important clients like Qualcomm, Boardcom and Alphabet Inc have all seen their stocks plummet following the move.