Huawei Secures Over 50 Commercial 5G Contracts | Financial Buzz

Huawei Secures Over 50 Commercial 5G Contracts

Chinese tech giant Huawei Technologies has secured over 50 commercial 5G contracts worldwide, edging out its competitors such as Nokia (NYSE: NOK) and Ericsson (NASDAQ: ERIC)

Huawei remains on top among its competitors despite being blocked from several regions such as Australia and Japan as well as continued pressure from the U.S.

As of July, Nokia had secured 45 commercial contracts, while Ericsson had landed 24 contracts. 

The U.S. has constantly pressured Huawei during the ongoing trade tensions with China. U.S. President Donald Trump has explicitly stated that he does not intend to do any business with Huawei. As a result, Trump ultimately put Huawei on a blacklist, prohibiting U.S. companies from dealing business with Huawei, unless they received a special approval from the federal government.

Trump’s ban on Huawei is efforts to accelerate the deployment of 5G from U.S.-based companies rather than relying on foreign sources. Trump has noted that Huawei is a national threat to the U.S. and its rollout of 5G technology.

Moreover, many Americans also believe that the Chinese could also threaten the U.S. by tapping into network systems and spying on U.S. citizens. 

Despite Trump’s ban, Huawei was still able to report a 23% growth year-over-year in revenue during the first half of 2019. Huawei relies on certain U.S. tech manufacturers for specific components for its devices. 

On Monday, the U.S. and Poland both signed an agreement to create stricter guidelines for companies hoping to be part of the latter’s 5G plan.

A handful of countries have not banned Huawei, but some countries have not finalized their decision. For instance, Germany has not banned Huawei yet, but the U.K. has not announced its decision whether to ban Huawei or not. 

Nonetheless, EE, the U.K.’s largest mobile networks, said it will work with Huawei on a national 5G rollout. 

Last week, Huawei released its own AI processor amid tensions between the U.S. Huawei’s move puts pressure on other semiconductors manufacturers such as Qualcomm (NASDAQ: QCOM) and Nvidia (NASDAQ: NVDA), lessening Huawei’s dependency on U.S. companies.