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So... How screwed is Huawei now?

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Red Squirrel said:
Pretty much. At the end of the day China has the power, they're the ones that make everything. They could cease making stuff for the US and Canada and we are basically starved of goods. If China is smart they hold the production of a major product release hostage by refusing to make/ship it. Ex: the next gen CPU, or phone, etc.

That's what we get for putting all our eggs in one basket, too. We are stupid for not manufacturing goods here. Money should not be the only deciding factor for everything, it's stupid to be such short sighted.
Click to expand...
It would be an interesting experiment to have China to an export ban on the USA. How long would American consumers standby with politics invade their electronics lives? But it isn't just electronics, is it? There is plenty of non-electronics that China manufactures, both in raw materials and in goods, that we take for granted.
 
ultimatebob said:
The funny thing is that China could probably end these trade sanctions on Huawei simply by threatening an export ban on Apple products produced there. It's kind of the "nuclear" option... both China and the US would lose a ton of revenue from a ban like this, but would definitely force the Trump administration to the bargaining table.

Crippling the sales of the US's largest company in terms of market cap would likely cause a stock market panic and possibly cause an economic recession it if ran for any period of time.
Click to expand...

Last I recall, Trump doesn't really care for the top interwebz / social media companies (Facebook, Google, Apple, etc...) Do you really think that would make him bend over?
 
Red Squirrel said:
Pretty much. At the end of the day China has the power, they're the ones that make everything. They could cease making stuff for the US and Canada and we are basically starved of goods. If China is smart they hold the production of a major product release hostage by refusing to make/ship it. Ex: the next gen CPU, or phone, etc.

That's what we get for putting all our eggs in one basket, too. We are stupid for not manufacturing goods here. Money should not be the only deciding factor for everything, it's stupid to be such short sighted.
Click to expand...

Yeah, no - Buyers have the power.

The western world is the minority in the world. Cheap labor is the majority. There is no denying this as fact.

Plenty of companies are using this as an opportunity to finally branch out from China and moving on to the likes of India, Taiwan, etc as a means of defense.


EDIT:

TXHokie said:
China is ahead of US in some areas but overall is still behind technologically. Huawei ban shows that their tech framework is still dependent on a lot of key western/US tech and strip those away, things start to crumble. China need to deal soon or risk a slowdown that may cause political unrest. How to do it without looking weak is the catch. Low cost labor manufacturing is moving to Vietnam, Bangladesh, India, even Mexico under tariff and the longer it drags out the faster that will accelerate.
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This guy gets it. I don't understand why others have problems understanding. China is no one world power of cheap labor. Cheap labor can be had in many parts in the world.

Since China has actually developed somewhat as a country, their labor also isn't as cheap as it once was.
 
BudAshes said:
Step 1: Steal Technology
Step 2: ???
Step 3: PROFIT!
Click to expand...

Well, its china and this company has close ties to the Chinese gov so I'm sure this is what they are going to do, just more brazenly than they have done in the past.

I have nothing against the chinese people, but their "steal any and all IP" ideology is just messed up. I also dont trust their government at all.
 
s0me0nesmind1 said:
Last I recall, Trump doesn't really care for the top interwebz / social media companies (Facebook, Google, Apple, etc...) Do you really think that would make him bend over?
Click to expand...

He considers the recent stock market gains to be one of his biggest economic accomplishments. If Apple gets caught in the trade war later this year and can't ship out their iPhone 11's on time, I would expect their stock to drop over 20% and probably take a good chunk of the tech sector stocks down with it.

Once his billionaire buddies start calling him to complain about their quarterly market losses, I think that he would be willing to negotiate at that point.
 
s0me0nesmind1 said:
Yeah, no - Buyers have the power.

The western world is the minority in the world. Cheap labor is the majority. There is no denying this as fact.

Plenty of companies are using this as an opportunity to finally branch out from China and moving on to the likes of India, Taiwan, etc as a means of defense.


EDIT:



This guy gets it. I don't understand why others have problems understanding. China is no one world power of cheap labor. Cheap labor can be had in many parts in the world.

Since China has actually developed somewhat as a country, their labor also isn't as cheap as it once was.
Click to expand...

Just no, it take YEARS to put together manufacturing plants and support infrastructure.
 
Denly said:
Just no, it take YEARS to put together manufacturing plants and support infrastructure.
Click to expand...

Yeah it's not something you can do overnight. North America in the good ol days had all of that and gave it all away. Well I don't know if it would be considered good ol days given the world war was happening but it seems it actually takes wars to force countries to innovate instead of outsourcing that somewhere else.

It's one thing to come up with an idea - I can practically do it in my dreams, but it's a whole other thing to actually build the factories to actually manufacture and make the idea work. China is years ahead of everyone on that. There are other countries that make stuff but China is probably the king.
 
Semi-related to this thread, Huawei's CFO turned state's evidence to avoid prosecution:
www.cnn.com

Huawei CFO Meng Wanzhou reaches agreement with US to resolve fraud charges

Huawei CFO Meng Wanzhou and the US Department of Justice on Friday entered an agreement to defer prosecution of US charges against her until late 2022, after which point the charges could be dropped.
www.cnn.com www.cnn.com

Although she didn't plead guilty, she confirmed the DoJ's statements as facts. If I was her, I would not be returning to China lol.
 
Pretty much, this whole thing is absurd. The US just used us and we paid the price. I feel sorry for those guys who have gone through unimaginable pain and suffering and maybe even permanent injuries.
 
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