When the U.S. government effectively banned Huawei in 2019, the initial outlook was that the company could survive without access to Google Mobile Services (GMS). Except for western markets, the telecommunications group has been distributing its Android products without it. Furthermore, popular apps such as Facebook and other similar services are likewise restricted in China. However, analysts reported poor hardware sales due to the missing services. With the Trump administration recently renewing the trade restriction, the Chinese government plans to enact a similar penalty on U.S. companies such as Apple and others in its home country.
Huawei was one of the top tech brands that closely competed against the likes of Samsung and Apple. Nonetheless, after an investigation launched by the United States allegedly found violations, authorities imposed the sanctions in question. According to a report in Independent, sources close to Beijing claims it is prepared to introduce a countermeasure that will likely affect popular American brands doing business in China.
Aside from Huawei, another Chinese telecom company – ZTE – was deemed a security risk. Both continue to deny the allegations. Market experts believe that the threat to place U.S. companies such as Apple on an "unreliable entity list" is an attempt to strongarm negotiations in its favour. Aside from the tech sector, there's also talks of China no longer sourcing aircraft and other aviation products/services from Boeing.
A statement issued by Huawei indicated that "In its relentless pursuit to tighten its stranglehold on our company, the US government has decided to proceed and completely ignore the concerns of many companies and industry associations." It then added "this decision was arbitrary and pernicious, and threatens to undermine the entire industry worldwide. This new rule will impact the expansion, maintenance, and continuous operations of networks worth hundreds of billions of dollars that we have rolled out in more than 170 countries."
It was even speculated that Taiwan Semiconductor Manufacturing Co (TSMC) no longer processed orders from Huawei after it confirmed plans to put up a factory in the United States. A representative from the company pointed out that these are "purely market rumour." It remains to be seen if China does ban Apple and others if the trade restrictions are not lifted soon.