China and US’ trade war is nothing new. One of the major outcomes of that was the trade ban on Huawei. United States banned Huawei products from being sold there. It seems like US is planning to take more aggressive measures to take down Huawei,
Wall Street Journal reports that US is planning to invest in Huawei’s competitors to take down the smartphone giant. US Attorney General William Barr said in a speech, “We have to make a decision on the ‘horse’ we are going to ride in this race”. Barr was delivering the speech at the Center for Strategic and International Studies in Washington. What US basically wants is to take away the telecommunications business from Huawei. Consequently, it’ll mean taking it away from China as well.
He further adds, “Some propose that these concerns could be met by the United States aligning itself with Nokia and/or Ericsson through American ownership of a controlling stake, either directly or through a consortium of private American and allied companies. Putting our large market and financial muscle behind one or both of these firms would make it a more formidable competitor and eliminate concerns over its staying power.”
This is an interesting move and bold move from the US government. Furthermore, considering the fact that Nokia and Ericsson need a thrust to take on Huawei. The decision to back them might help US turn the tables around.