They are smug. They are corrupt. They are infiltrated. They Lie. They produce sub par electronics. Hilariously the executives use Apple products. But, Huawei, love’m or hate’m, is a required evil.
Huawei Is Backed By Heavy Hands
Huawei may seem like that loud mouthed, 5 footer braggart on the playground… but if you decide to let them catch these hands, you’ll soon see his 8 foot tall, 500lbs cronies walk up to defend him. In this analogy, it was the Orange Cheeto, Donald Drumpf himself trying to have China catch his tiny hands. In retaliation for trade war negotiations breaking down, he decided to lob a completely mindless but powerfull uppercut to the Chinese manufacturer. Seemingly listening for once to his intelligence agencies who have warned of massive security concerns regarding their 5G equipment, he has damn near shut them down.
Because of trade restrictions imposed, Google removed their Android license, Qualcomm has jumped on and pulled their licenses and a number of consortiums have revoked their membership. This has left Huawei scrambling to initiate back up plans.
As much as I revel in seeing them squirm, and would love to see them fail for the crap they’ve pulled…. it’s the absolute pummelling that goon behind them is capable of dishing out that worries me.
Who is that goon?
The China Problem
Huawei has deep ties to the government in China. It’s the basis of their security threat as there are numerous concerns worldwide about security backdoors for Chinese Intelligence. You start trying to restrict Chinese government interests.. well, as a Canadian… we’ve seen it first hand. In my province of Alberta, our agriculture is being attacked because we had the audacity to abide by our extradition treaty and arrest an Huawei executive.
For Apple, the consequences of Orange Julias move could be absolutely dire. China hosts the majority of Apples manufacturing. If they decide to come down and tariff the hell out of things, it could cause the cost of Apple products to skyrocket. Apple could effectively be brought to their knees at a whim of the Chinese government. I think that is the reason Apple is securing manufacturing outside of China.
But even if Apple were able to move all its manufacturing out of China over night… China still controls most of the supply chain… right down to precious rare earths used in the creation of virtually all electronics. And it looks like China is prepared to do something about its power. China accounts for 95% of rare earth exports… and if you have any idea what China is up to in Africa… they are doing their damn best to Pokemon them all. My own in-laws are complaining about Chinese inroads into Ghana! And its all about exploiting the continent again.
An Unlikely Ally
So, thanks to the usual idiocy from Cadet Bones Spurs, Apple could very well be heavily damaged by the Chinese government in retaliation. Of course this action would hurt Chinese business interests as well, and considering the incredibly amount of money Apple manufacturing brings in, but it’s more important to protect the home player.
Oddly though, even Huawei CEO Ren Zhengfei has come out in defence of Apple, stating he doesn’t want Apple punished!
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