The United States continues to be embroiled in modern day Cold War with China, as sanctions to Huawei are a major blow for the company.
Via CNN Philippines
Huawei, through its inception and entry into the US market, was always believed to have an ancillary connection with the Chinese Government. However, these rumors picked up steam as multiple reports suggested that Huawei was in-fact not an employee owned company, but, had huge investments from Chinese Private Investors who were decoy for state supplied investment. Yet amidst such reports, Huawei claimed to be clean as a whistle, delving and releasing information through videos and documents, as to how they protect user data and dismissed the “common misconceptions” consumers had regarding their products. Although, Huawei and the Chinese Government vehemently deny any derogatory allegations, a recent study analysing 25,000 resumes found links between Huawei employees and members who were previously a part of the Chinese Intelligence.
The following review coupled with the anxiety faced by international consumers has led to the US imposing heavy sanctions on Huawei. Presently, the US Commerce Department declared restriction of any semi-conductor company selling chips, developed through US software or Research and Development (R&D) to Huawei. This effectively “seals the deal” for any Huawei presence in the American smartphone market, and it is believed other countries may follow suit.
China has not gone out of its way to make any allies. The Chinese Government's investment in Africa as well as South East Asia is indicative of its motives to expand its influence. As China continue to pumps money into corrupt countries, its influential counterparts believe that their countries' intelligence is being meddled with. This concern has relayed like a dominos, knocking down everything in its path and if not stopped, it may also confirm their worst beliefs. Thus, such sanction between Huawei and the United States Government, has what experts claim to draw a “Technological Iron Curtain”. The Iron Curtain can alter any trade relation between the two countries and may curb any relationship between the two at all.
The main concern of United States however does not stop there. The US intelligence believes that the setting up of 5G towers sets up an Intelligence breach like none other. 5G, perverse to its predecessors 4G and 3G, is claimed to have 200 times more attack vectors, or pathways to do damage as it is much harder to separate the Core from the Periphery. The mounting demand for faster Internet Connection and a fragile Diplomatic Connection has put the United States Government in limbo.