Chinese technology giant Huawei has had a hard time lately because of the rumors associating them with the collection of data for the Chinese government. Since their recent blacklisting within the US, their ability to operate and market their technology in North America has taken a significant hit. However, to maintain their brand presence and potentially work around the US blacklist, the company is seeking a buyer to help distribute its technology into the US and other areas where it is currently viewed with suspicion.
While Huawei states that the technology will be the basic framework of their 5G wireless technology, any buyer is free to edit and modify the technology as they see fit after purchasing it. The ability to adapt the tech makes it attractive in several ways. The most significant of these benefits is being able to leverage a professional 5G wireless implementation while still retaining full control over settings and network specifications. Even if the US doesn’t provide a buyer, many smaller, developing nations in the west may see this as their best ticket to implementing 5G technology in a big way across their countries.
Surviving the Trade War
Huawei’s marketing department noted that the company suffered significant losses thanks to the ongoing trade war between China and the US. This latest move could potentially reopen markets to the tech giant that had been previously closed off. The US blacklist stops new devices manufactured by Huawei from entering the country, but the company is finding ways around this ban by offering their tech to third-party distributors.
The 5G offering gives the company a foothold in a market where it technically isn’t supposed to be. While not strictly illegal, the loophole creates a point of entry that the tech giant can exploit. The company needs to maintain a strong presence in the US market for as long as it can since the US forms a significant consumer base for electronics. By offering their technology to third-party buyers, the company may be able to work around the American government’s restrictions and recover some of their lost profits.