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Saturday, January 01, 2022

Trump broke Huawei like it was Kathy Griffin

How about some good news to start Twenty-Tutu off right?

Red China's big telecom is melting down thanks to our old friend Donald John Trump.

Reuters reported, "Chinese telecoms equipment giant Huawei Technologies Co Ltd, battered by U.S. sanctions, expects 2021 revenue to have declined nearly 30% and predicted continued challenges in the New Year.

"Revenue for the year is expected to be 634 billion yuan ($99.48 billion), rotating chairman Guo Ping said in a New Year letter to employees on Friday.

"That represents a fall of 28.9% from 2020 revenues of 891.4 billion yuan."

Just a few years ago, Huawei was doing great as it installed 5G around the world.

Then along came President Trump.

Reuters said, "In 2019, the U.S. Trump administration imposed a trade ban on Huawei, citing national security, which barred the company from using Alphabet Inc's Android for its new smartphones, among other critical U.S.-origin technology.

"The U.S. sanctions, together with weaker domestic consumption due to the coronavirus, weighed on Huawei."

Those sanctions were just the beginning.

On May 16, 2019, the day after Trump imposed those sanctions, the New York Times reported, "The Trump administration has filed criminal charges against Huawei for stealing technology. It has all but snuffed out the Chinese tech giant’s sales in the United States, calling the firm an espionage threat. And it has tried to persuade other governments to do similarly.

"But Washington had not taken a straight shot at Huawei’s ability to do business anywhere in the world until late Wednesday, when the Commerce Department announced restrictions on the company’s access to American technology.

"American companies including Qualcomm, Intel and Broadcom sell Huawei microchips and other specialized parts that go into its smartphones and telecom equipment. Google’s Android software powers its phones. Of the $70 billion that Huawei spent on components and other supplies last year, $11 billion went to American companies, a Huawei spokesman, Joe Kelly, said.

"If Huawei is cut off from these suppliers, the effect could be catastrophic for the millions of people who use Huawei smartphones — and for the mobile networks, across a wide swath of the planet, that run on Huawei gear."

America's Maoists did not like that.

NYT reported, "It would be 'the trade equivalent of a nuclear bomb,' said Kevin J. Wolf, a partner at the law firm Akin Gump Strauss Hauer & Feld and an assistant secretary of commerce under President Barack Obama."

But the Times assured its elitist readers, "Given the spiraling tensions between China and the United States on tariffs, the move against Huawei may also be short-lived. Talks to resolve the trade fight have stalled, and both sides are digging in their heels. The pressure is on to find common ground ahead of a potential meeting next month between President Trump and China’s top leader, Xi Jinping, in Japan. Washington’s campaign against Huawei could become a bargaining chip."

And Paul Scanlan, Huawei's CTO, assured CNBC this would backfire.

He said, "The Trump Administration has amplified its campaign to harm Chinese technology companies, widening its focus from Huawei and 5G to the Chinese social media apps TikTok and WeChat. It’s clear that these maneuvers are designed to distract from pressing domestic issues and to hobble Chinese tech firms for the commercial benefit of U.S. competitors."

That was the best Huawei could do?

To be sure, Donald Trump no longer is president.

But Huawei's revenues dropped from $123 billion in 2019 to under $100 billion two years later.

And that $123 billion was down from the $135 billion it expected until Trump took action.

So far, Biden has not bailed out Huawei. Maybe he is holding out for a million-dollar-a-year no show job for his idiot son. We shall see.

28 comments:

  1. I love it when a plan comes together.

    In all truth, the entire Red Chinese economy is sinking by the bow. Between tofu dreg infrastructure and crashing real estate (the backbone of the economy), Huawei is just another nail in the coffin.

    To be sure, Donald Trump no longer is president.

    Of course, he is. When you steal something, that does not make it yours.

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  2. "It would be 'the trade equivalent of a nuclear bomb'"
    But no where near as costly and generally destructive as setting, effectively, a biological warfare element loose on the world.

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    1. Excellent added point why we should bury the Maoists there and here.

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  3. The second worst thing for China was Trump being elected. The worst thing was him being defeated.

    DC doesn't like China - and what China failed to realize is that DC uses people and when their usefulness ends they cut them adrift.

    Biden has not changed the sanctions strategy against China. ANd it will get tighter for them. Some analysts suggest Xi realizes he is cornered and is changing to focus on COVID - hence the parades of shame going on there now.

    China is toast, and their impact on the world stage is starting its fall.

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    1. China hs done a wonderful job ticking off people around the world. Australia went from number one friend to "give me nuclear powered subs" in 5 years. With the property developers China is going to screw the foreign investors just when they need outside cash to cover these debts. Xi is going full idiot - I mean - full Mao internally, killing sectors of his economy.

      It seems everyone is being led by idiots these days.

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    2. "It seems everyone is being led by idiots these days."

      That seems to be what caused the Bronze Age collapse c. 1200 B.C. - and we may be repeating that whole thing nowadays...

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    3. Mikey--Aussies were due to get French subs quickly. Beijing Biden strongarmed them and forced them to buy American subs that will take many years. Hmmm...

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    4. One little tiny problem! THe french subs were giant tubs of noisy junk that couldn't hide from the fbi much less China and
      Russia.
      The whole sub theory is "you don't know where they are" and the Frenhys were MSNBC adverting machines in the age of technoloy we now live with!

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  4. Chalk one up for the good guys.

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  5. The Chinese ruling elite generally acts in the national interest; whereas the American ruling caste acts in ways so antagonistic to its people’s welfare as to constitute treason.
    China’s leaders still want investment and technology from the West, but they think it is in decadent decline and are decoupling from Western norms and ideas

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    Replies
    1. China has no respect for the American ruling caste but they are still scared as hell of the rest of us. They peed the first day on our Sec States legs but they never insulted us and they would if they thought the same of us as they do Bidenites.

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  6. I don't understand why more people aren't upset about the CCP unleashing a horrible virus on the world. The MSM won't discuss it and neither will the incompetent Biden administration. Now, the politicians in Washington and local politicians everywhere are locking down cities and states while some are requiring proof of vaccination. Our world has been turned upside down and like smallpox, this virus will not go away. Tim Favero

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  7. Trump’s business instincts were good. I would like too see us ban China from buying up property and companies in the US too, and shut down the CCP program infiltrating our universities.

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    Replies
    1. Trump's business instincts ARE good.[FIFY]

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    2. That right there gives me great concerns. I live near Manhattan Kansas. We have Ft Riley and KSU. K-State has a nuclear reactor for training engineers. Why do we allow Chinese military officers pretending to be students within a hundred miles?
      We are now adding Wuhan of the West to this bundle. Make it 500 miles. Better yet, make them stay in China.

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  8. Tim, most of the "news" we're getting on this is disinformation. It's difficult to figure out exactly what role China played in all of this. But, one thing that seems pretty well documented is Fauci's role from the beginning and his behavior since. He couldn't continue his virus work in the US so he laundered money to continue the work in China. What if he had contracted with a lab in another country? Would China then be off the hook? There is a ton of unanswered questions, except for one: Fauci is up to his neck in all of this. Kennedy's well-documented book is the smoking gun. Why Fauci isn't in jail is beyond me.

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  9. As Calvin Coolidge might say, the business of President Trump is business. He indicated that if he were back in power, he would sue China for $60 trillion to indemnify us for their biological warfare.

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  10. One thing China can't feed themselves. or provide enough energy. Or enough babies. they are in a precipitous decline.

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  11. Yep, all true. In addition to that, the CCP especially needs FEMALE babies, since they implemented their ruinous "one-baby" policy from 1980 to 2015 which resulted in a tens of millions more males than females. Too bad if you are a young man looking for a nice wife to marry. It will take roughly until 2070 before China will have a normal male-female ratio again.

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    Replies
    1. Unless they start a war and get rid of 10-20 million excess males. That’s a BIG omelette.

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  12. Big Tech saw DJT as their excuse to shift away from China, notice how they barely complained about this. They had seen so much IP stolen and a lot of raw deals. Suddenly, they had an out and they took it. Selling chips to Huawei so they can steal a phone sale 10x as big was a lousy deal.

    The big thing with Chinese equipment in cell phone networks (the server farms, not the individual phones) is the automatic eavesdropping on any call they choose to listen to - Big Brother that is also the enemy.

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  13. That 5G technology is being installed worldwide as part of the Global "reset".

    Friend of a friend's daughter has covid. Being quarantined. Son drives into the driveway to visit and his phone pings - message: stay away from the house because of the covid situation. This happened two days ago. In New York.

    Blew my mind too.

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  14. Hey Don, Thanks for your columns! Keep them coming!

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