UK plans to remove Huawei's 5G network
In another fresh blow to the mobile giant, Huawei are now facing being banned from having any involvement into the UK's 5G network.
This move comes shortly after Huawei's main chip manufacturer, TSMC cut ties with the mobile retailer over new regulations imposed by US regulators. The UK government is said to be working out the best way to phase the mobile provider out, with the year 2023 being the most likely target for having no involvement from Huawei in their 5G network.
Boris Johnson announced the plans to the UK's national cabinet, stating that he does not want a 5G deal, but that the UK's relationship with Huawei should remain in some form or another.
The UK has been criticised, mostly by the US, for having a planned 5G setup that would be built with Huawei taking 35% of the infrastructure, otherwise building 35% of its network
There have been Tory MPs warning that the UK would lose friends (In relation to other countries), if it was to retain the current deal it has with Huawei permanently, now Boris Johnson wants the agreements to be drastically scaled down as soon as possible.
Both the UK and the US will have reasons to be worried, with the current emergency, China has been capitalising by expanding its influence around the globe. China has been buying out companies and stocking up on commodities, as the coronavirus pandemic continues to make those countries in the newer stages of fighting the disease struggle, more each day. As we know, China's Communist party have most likely considered using, or are already implementing, spy tactics against other countries, most commonly democratic countries like the US, UK, Canada and Australia. Australia is also seeing China impose heavy tariffs on their barley imports, most likely due to the increasing tension between the two countries over China's lack of information, especially over the coronavirus - Australia has ordered an inquiry into the data.
Huawei may have to resort back to manufacturing its chips via Chinese made companies, and is reported to be trying to strike a deal with SMIC. The chip manufacturer has already received state-funded support in the region of $2 billion. Huawei will have to get lucky though, as SMIC also use some elements in their products that are US made - Huawei are hoping to accelerate a larger deal, as this would be their best shot
at mirroring onshore production on a similar
scale to how they are used to with TSMC.
Although Huawei will inevitably be struggling as a result of these fresh blows to their trade, it no doubt serves as a call to all countries involved that more reliance needs to be set on taking a nationalist view, at least in terms of manufacturing products of all kinds for their own people.
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