Why Huawei Technologies Co. Seem to be on the Receiving End of U.S-China Trade War

Everyone who has been following the U.S-China trade war knows that there are some organizations that have experienced considerable challenges, and they will find it very hard to recover from such issues. The trade war seemed like a war between the two giant nations in the world, but it is essential to indicate that it is the smaller organizations that seem to have been on the receiving end of some of the policies that these countries have been incorporating.

Huawei Technologies Co. is Suffering

Huawei Technologies Co. is obviously not a small company in China. It is a leading tech giant that has been dominating the world in the last few years. However, this is one of the organizations in the world today that seems to be on the receiving end of the extreme challenges that have been in the market between the two countries. There is a feeling that most of the strategies that the U.S was using were directed towards Huawei Technologies Co., which affected its success in the market.

Huawei Technologies Co. has continued to face some extreme operational issues because it has lost the rights to use most of the software and technologies that have been made in the United States. As such, the organization has been forced to make sure that it is only relying on some of the technologies in China, which means that it is currently missing some of the essential materials to continue with its production activities in the country.

Declining Profits

This is the first time that Huawei Technologies Co. has released its quarterly financial returns since the beginning of the trade war. As the statements show, the company has been experiencing some very dangerous financial aspects. There has been an increased stream of losses which the company has been struggling to maintain in its business operations. This is because the entity is currently operating at reduced production capability.

Huawei Technologies Co. continues to feel the weight of the sanctions that it has been getting from the United States. Most of the companies that have been supplying the entity with the necessary production materials are no longer supplying it with what it needs. This means that the organization has to rely on raw materials from China, which is currently experiencing reduced capacity due to the current pandemic. It is important to indicate that the entity will continue to suffer if the current trade war will remain.

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