The United States has put several restrictions and sanctions on the Chinese giant Huawei, effectively banning the company from doing business with any of the American companies or the companies using American technologies.
While Huawei has been severely impacted because of these sanctions, American companies are also worried about potential losses. However, it seems that the deeds of the U.S. will benefit another emerging global superpower.
As per the SCMP report, Huawei founder Ren Zhengfei has said that the company has increased its investment in Russia after the United States put Huawei on the Entity List last year. He added that along with increased Russian investment, it expanded the Russian scientist team, and increased the salary of Russian scientists.
The company has become the leading smartphone brand globally, dethroning Samsung. However, it will be impossible for the company to keep the lead position given the recent setbacks. The new restrictions have made it impossible for Huawei to manufacturer its own Kirin chipsets and procure chipsets from the likes of Qualcomm.
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However, US-based chip suppliers, including Qualcomm, have been trying to get approval to resume sales to Huawei. On the other hand, Taiwanese chip designer MediaTek has applied for a license to continue doing business with Huawei.
But, the company can still source U.S. chips for the cloud computing business, and thus, the company has now shifted its focus towards this. Huawei’s cloud computing sells computing power and storage solutions to companies, along with access to artificial intelligence.
As per the reports, Huawei is putting the cloud computing business in line with the smartphones and telecom equipment business. On top of that, it is said that the Chinese government will increasingly support the company through public cloud contracts.
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