Huawei Gains in Latin America, Feels Effects of US Sanctions

The U.S.-China Economic and Security Review Commission warned of a continuing security threat from Huawei but said U.S. sanctions are having an effect. In Q2, “Huawei reported a 38 percent year-on-year fall in revenue, the third straight quarter of decline,” said the annual report to Congress released Wednesday: “Huawei executives have attributed their troubles to U.S. sanctions, which restricted the company’s access to chips used in many of its phones.” Huawei and ZTE are gaining ground in Latin America, with China offering subsidies and government support for using technology from the two vendors, the commission said. “Huawei has already become a leader in the region’s mobile device market and is a top competitor to build out 5G infrastructure in Brazil, Chile, Colombia, and Mexico,” it said: “By integrating Chinese technologies into the region’s digital infrastructure, China is setting the stage for building long-term commercial dependencies as the region’s market develops.” China can also shape 5G and other standards in the region. The panel said China is poised to make cloud computing gains in developing countries. “Chinese cloud computing companies have thrived in a protected home market and with few exceptions can operate freely in the United States while U.S. companies face barriers in China.”