The arrest of Meng Wanzhou, the daughter of the founder of Huawei, in Vancouver last week raises the chance that the telecoms equipment maker could become a fresh victim in the trade war between the US and China.
Earlier this year, China’s other major telecoms equipment firm, ZTE, was temporarily devastated when the US banned American companies from doing business with it, severely restricting its supply chain.
Huawei would be less vulnerable if hit with a similar restriction, but its continued reliance on US-made components, especially in semiconductor chips, means such an export ban would be a major setback for Huawei’s ambitions to be a global leader in the next generation of 5G mobile communication.
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