In Affärsmodellbloggen, Weekly disruption feed

Enjoy this weekly feed of inspiring, interesting and intellectual articles and news, with a focus on disruption!

Trade war next level, Huawei

We have written several times about the ongoing trade war between China and the US since the Huawei CFO was arrested late last year, now the dispute has gone to a whole new level. A bit more than a week ago Trump declared national emergency and signed an executive order;

“Banning sales and use of telecom equipment that poses “unacceptable” risks to national security, including critical infrastructure and the online economy.”

With the effect shortly after that several US firms have stopped doing business with Chinese companies like Huawei, and most importantly Google has withdrawn licenses and suspended all business with Huawei This effectively means they (the second biggest smartphone company in the world, after Samsung) can’t use Android in their smartphones anymore.

This is of course a complete disaster for Huawei and business in general, and not only smartphones will be affected but also network products and PCs (that use intel processors). In fact this could slow the roll out of 5G across the globe as Huawei are crippled by the order. Of course, there is also a second side to this, last year Huawei alone spent 11 billion dollars buying components from US companies!

However, the problem remains, no proof has yet to be shown that Huawei poses a real security threat. Also, while having concern for security when it comes to network infrastructure in the US is justifiable what about software and components that Huawei will sell in phones (or other hardware) in Europe? I think US companies won’t mind keeping that business… What’s even worse is a response from Trump while addressing press this past week where his answer claims two things:

“First, that the restrictions were placed on Huawei because the company is a security threat, and second, that the restrictions against Huawei could potentially be lifted as part of a trade deal.”

But wait, those two claims can only really make sense together if the security threat is a bluff…

Related article: Trump declares ‘national emergency’ to make way for Huawei ban (updated)
Related article: Huawei Built At Least a Three-Month Stockpile Ahead of Trump Ban

SpaceX has begun building its internet satellite network

As we have mentioned earlier in the feed, SpaceX’s goal is to build a vast network of satellites, providing the globes most rural areas with high speed internet connection. Now, the first step is taken as SpaceX successfully deployed the first 60 (of 12 000 planned) satellites into orbit. However, perhaps the most impressive part is that the rocket that launched the satellites has landed safely on earth and will be reused for upcoming launches.

Related article: SpaceX just launched a Falcon 9 loaded with Starlink internet satellites

 


 

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