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The Huawei Sanction Might Just Pop the Tech Bubble

This crisis is about much more than one company

Owen Williams
OneZero
Published in
7 min readMay 28, 2019

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Photo: Mairo Cinquetti/NurPhoto/Getty

LLast week, Chinese tech giant Huawei was officially sanctioned by the United States. That effectively means U.S.-based companies are banned from doing any sort of business with the mobile phone giant moving forward. And this is just the beginning.

After the U.S. sanctions were announced, Google revoked Huawei’s Android license, which could leave millions of smartphone owners stranded without updates. The process has since been temporarily suspended with the Department of Commerce granting Huawei a surprise 90-day permit to support existing customers — but the reprieve only covers existing products, and the window seems unlikely to be extended.

Shortly after Google’s move, computer chipset maker Intel said it couldn’t sell laptop CPUs to Huawei, and a few days later, chip designer ARM announced it couldn’t sell the company smartphone CPUs — even though ARM is based in the U.K., which is technically beyond the reach of the embargo.

If any of these things happened in isolation, Huawei might have been able to weather the storm until one side of the U.S.-China trade war backed down. The Shenzhen-based company certainly seemed to have been planning for a scenario just

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OneZero
OneZero

Published in OneZero

OneZero is a former publication from Medium about the impact of technology on people and the future. Currently inactive and not taking submissions.

Owen Williams
Owen Williams

Written by Owen Williams

Fascinated by how code and design is shaping the world. I write about the why behind tech news. Design Manager in Tech. https://twitter.com/ow

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