HUAWEI Develops Software and Security System via AOSP, Experts Show Concern on the Issue

HUAWEI Develops Software and Security System via AOSP, Experts Show Concern on the Issue

After Huawei has been cutting off from Google on Monday due to being in the U.S. blacklist which bars U.S. firms to do business with Huawei. As a result, Alphabet Inc. has stopped providing hardware, software, and key technical services to Huawei.

Currently, Huawei only able to use a public version of Google’s operating system through the Android Open Source Project (AOSP). Huawei asserts that the company is working closely to develop the software and securities for the customer through the open source. Moreover, Huawei also insists on continuing to provide and built a security update and sustainable software ecosystem to all existing Huawei and Honor smartphone and tablet products globally.

In regard to this situation, Six experts have given their perspective on the matter.

Ian Shepherdson, Chief Economist at Pantheon Macroeconomics, says the day’s news isn’t too much of a surprise. Although Huawei is not a masterpiece of Chinese trade, the U.S. might think about this and worried about the ability of Chinese to disrupt European-U.S. networks for a long time

Scott Nations, chief investment officer at NationsShares said this is not just a trade deal. Now, the market is afraid the power of the President Trump to deal with the people or business which connected to the geopolitical.

Mohamed El-Erian, Chief Economic Advisor at Allianz, says the U.S. can win the trade war but might suffer collateral damage. He stated “This massive divergence in the U.S. — part of it can be explained that the U.S. is in a better place to deal with higher oil prices and it’s in a relatively better place to deal with the trade tensions. Remember, we win a relative trade war. In absolute terms, we suffer, but we win relative to others, so I think the markets have understood that the U.S. is in a better place than the rest of the world. The question is can we stay there?”

Craig Moffett, Founder and Senior Analyst at MoffettNathanson, says the decision to cut off Huawei also has political consequences. “I think it’s much more to national security, but you can’t escape that it also has implications for this narrative that China beating us in 5G is politically a very cogent argument, right? And so, to the extent that we can limit the expansion of the 5G network elsewhere by cutting off Huawei from its suppliers helps that narrative.”

Jim Cramer, Host of CNBC’s “Mad Money,”  told “If you own these stocks please recognize the risk, because nobody is going to raise numbers here and everybody is going to cut numbers. Every one of those companies that you see, those numbers are too high … There’s some that aren’t related and getting thrown out with the SMH.”

Mark Mahaney, Lead Internet Analyst at RBC Capital Markets, breaks down what this could mean for Google. He said “I don’t recall Google ever doing anything like this in the past. It’s probably not material for Google. Google doesn’t really have any exposure to the China market except for Chinese exporters who do look to advertise on Google. Potentially, I don’t look at the phone sector that closely, but for a company if you’re not able to have a full robust suite of Android apps on your phone I don’t know what you have. You’ve got something that’s akin to a brick. The reason people buy these phones isn’t because of communication, it’s because of the functionality embedded in all of the Android and Google apps and services. So there’s a real problem on one side, and it’s a little unclear to me what the issue is going to be for Google moving forward.”