The trade war between the United States and China has escalated to a
higher level after the US government confirmed last week that it will intensify
its efforts to prevent various Chinese applications, as well as Chinese telecom
companies, from accessing sensitive information about American citizens and
companies.
"Apps like TikTok and WeChat pose major threats to the personal
data of American citizens," said US Secretary of State Mike Pompeo.
(Pompeo) explained the steps that he wants American companies to take
to deal with unreliable Chinese applications, as one of the important steps
includes removing untrusted Chinese applications from US application stores, as
well as clamping down on cloud computing companies.
So why should Chinese phone companies prepare for the worst if the
measures that the Trump administration intends to take take effect?
At first glance, the term (unreliable) began to be ambiguous to many
observers, but many analysts considered it a warning to all Chinese phone
companies, as these companies must prepare for what is worse in the coming days.
The matter has been likened to the same rhetoric the US government
had previously used before it took harsh measures against Huawei in 2019.
Where we find that in a shocking turn of events, the Chinese company
found itself in the list of entities prohibited from trading with American
companies or companies that have commercial relations with the US government.
Huawei has been affected severely, and other Chinese phone companies
may be affected more strongly:
Google was one of the most prominent and pivotal companies at Huawei,
which was forced to cut its relations with it, as the loss of including Google
Play services in Huawei phones was a severe blow to the company, and it was
forced with it to launch all its modern phones and tablets without Google's
previously installed apps and services or the Google Play Store. .
Hence, we find that this fate may await many Chinese smartphone
manufacturers if the Trump administration simply decides that all Chinese
brands, such as: Oppo, Xiaomi, TCL and OnePlus are unreliable, and this means
that the ambiguous language used by the Trump administration will make all
Chinese companies are insecure about what's coming.
Blocking Much More Than Losing an App Store:
We find that the US ban against Chinese companies, if implemented,
may go beyond just losing Google Play services or the application store, as it
could reach a ban on dealing with manufacturers of internal components of
phones, such as: Qualcomm, and TMSC that manufactures smart phone processors
that were prevented from dealing with a company. Huawei due to US sanctions.
Where the repercussions of the trade war between the United States
and China could lead to restricting or cutting the supply of chips that are
very important to Chinese phone companies, such as: Oppo, OnePlus, and Xiaomi,
as none of these companies has the capabilities to design powerful processors,
except for Huawei, which has its own responsible development unit. On designing
groundbreaking Kirin processors.
All other Chinese companies use the processors of the American
company Qualcomm or the Taiwanese MediaTek, and even if a company, such as
Oppo, could design its own processors, it certainly will not compete with
Qualcomm or Huawei processors in terms of power and efficiency.
Hence, we find that the lack of Chinese companies' access to the
leading processors, along with the banning of Google services, would put them
in a more dangerous position that may threaten their future significantly, so
it is sufficient to take a look at the Chinese company ZTE and what it has
reached to find out the extent of the damage it has suffered after. Exposure to
US sanctions in 2018.
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