In: Economics
What are present issues and problems for Huawei? What dilemmas or challenges they are facing now? Describe it specifically.
Huawei is the world's No. 1 telecom supplier and No. 2 phone manufacturer, but it's a pariah in countries like the US. For more than a year, there's been no shortage of scrutiny on the Chinese telecom giant, and a number of countries have banned the use of its networking equipment. Its phones are virtually invisible in the US despite its massive presence around the world.
The Chinese telecommunications company Huawei is under scrutiny around the globe over concerns that its close ties with the Chinese government present national security threats to the U.S., Europe and allied countries. President Donald Trump has issued an executive order banning any electronic or digital technology that the Secretary of Commerce deems a national security threat, a move widely viewed as aimed at Huawei. In January 2019, the U.S. Department of Justice charged the company and its chief financial officer, Meng Wangzhou, who is also the daughter of the company’s founder, with fraud.
As far back as 2003, the company was accused of stealing intellectual property, including from U.S.-based network hardware maker Cisco. The companies settled out of court, but Huawei has been accused of stealing other firms’ intellectual property and violating international economic sanctions.