Huawei’s Future Secured As China Preps $170 Billion For 5G

Huawei’s future is largely secured as China prepares to spend in excess of $170 billion on 5G rollouts. Even as the United States government continues targeting its businesses the world over, the Shenzen-based conglomerate appears largely unconcerned about its prospects. That’s in no small part due to the enormous size of its domestic market.

Much like it somewhat insulated its consumer electronics performance, China’s the reason Huawei’s telecom ambitions are still massive. Huawei remains the world’s largest manufacturer of wireless hardware and is hence the front runner for many 5G deployment projects in the Far Eastern country. According to new reports, China will make the leap toward the next generation of telecommunications primarily with Huawei technologies.

Not much hope for Huawei’s 5G prospects in the West

None of that is to say the future of Huawei’s overseas wireless business is anything but grim. Australia and Japan both followed Washington’s lead in outright banning the firm’s next-gen infrastructure. The Western intelligence community largely agrees Huawei poses a security risk to China’s geopolitical rivals. Of course, the company has been dismissing those claims as baseless for over two decades now. According to Huawei, Beijing has no more power over its dealings than e.g. the U.S. government has over Google. Then again, that’s hardly a comforting thought, even assuming it’s true.

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The Huawei-U.S. standoff has been years in the making until its 2019 culmination. Following countless clashes with American companies and numerous administrations, the Chinese behemoth’s supply chain endured a heavy hit last year. Between Qualcomm’s Snapdragon chipsets and Google Mobile Services for Android, Huawei’s still extremely reliant on U.S. tech.

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In the aftermath of the 2019 sanctions, the company doubled down on its proprietary Android apps and smartphone silicon. The move managed to counter the immediate effects of Washington’s sanctions – to put it mildly, that is. More specifically, the sanction-burdened Huawei actually managed to grow its business across the board in 2019.

Whether Huawei’s truly unstoppable remains to be seen, but the conglomerate certainly won’t be going away anytime soon. China’s understandably not to keen to let one of its largest corporations fold under U.S. pressure. That’s without even accounting for Huawei’s overseas businesses that have been doing great in recent times.

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For example, its consumer electronics unit continues to make waves across Europe, especially after strengthening its partnerships with Deutsche Telekom and many other wireless carriers on the Old Continent.

Huawei’s 5G prospects in Europe are also not too bad, given the circumstances. E.g. the company’s likely to play a role in 5G rollouts across the UK.


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