(May 24) The negative effects of the US ban on Huawei technology are growing worse as the SD Association, the trade group that sets standardized specs for SD and micro-SD cards, has barred Huawei from the Association.
Removal of Huawei was due to Trump's ban on the company
The SD Association has confirmed to Android Authority that Huawei’s removal from the group was due to Trump’s executive order. MicroSD cards and SD cards will continue to work on existing Huawei hardware, but as it is barred from the SD Association Huawei won’t be able to use the standards on future products.
Other companies have cut ties with Huawei
Google has also cut ties with Huawei after Trump's executive order. Huawei will no longer be able to use Google's Android proprietary apps or services or get updates in its Android phones. This may not be much of a factor in China where most of the apps are not available but those in other markets will be unhappy. The issue is discussed in a recent Digital Journal article. However, this may just encourage Huawei to develop its own operating system which it has been doing for years.
However, chipmakers such as Intel, Qualcomm and others have also dropped ties with Huawei although there is at least one chip firm still doing business with the company. The Wi-Fi Alliance, which sets Wi-Fi standards across the industry, has also “temporarily restricted” Huawei’s membership because of the US ban. Huawei has voluntarily left JEDEC , a semiconductor standards group best that sets RAM specifications, due to the Trump order.
The government ban will hurt US firms too
US firms will lose a huge amount of revenue as they sold an estimated $11 billion worth of components to Huawei last year.
Roger Kay, founder and analyst at Endpoint Technologies Associates said the ban will likely speed up efforts by Huawei and other Chinese firms to develop their own sources of microprocessors and other components. Kay said: "The short-term effect on both American and Chinese companies are inevitably negative. The longer-term effect is that Huawei and other Chinese companies turn away more sharply from American suppliers."
Other countries whose technology the US may view with suspicion could also turn away from US suppliers of parts for their technology as they could face the same difficulties as China. Other firms than those that supply Huawei may find themselves losing Chinese customers. Apple may find that it will lose sales in China a huge market. The Chinese are rallying to the defense of Huawei as reported in a recent Digital Journal article.
Its possible that Trump is using the ban on Huawei as leverage to get a good trade deal with China as he has recently said that Huawei could be part of a deal. However, the result is to disrupt well established trading relationships between US and Chinese firms that no doubt will have long term negative effects on world trade and cooperation.
Previously published in the Digital Journal
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