KEY TAKEAWAYS
The first Trump administration tried to limit sales of Huawei’s telecom equipment in America and other nations due to cybersecurity concerns. The administration later imposed export controls on Huawei in an attempt to kill it for doing business with Iran.
The U.S. government’s rationale for its actions against Huawei is a legacy of an earlier era when America had enough power to impose crippling sanctions without harming its own companies’ competitiveness.
Because of U.S. actions, Huawei developed its own operating system (OS), built its own chips, and bought equipment from other nations.
Despite U.S. actions against Huawei, it remains the world’s largest telecom equipment manufacturer, with a 34 percent global market share in 2024, up 2 percentage points from 2018.
Meanwhile, Huawei succeeded in boosting its global market share in telecom equipment and expanding into new markets, such as smart automotive solutions. Indeed, Huawei asserts that it has built an ecosystem entirely independent from U.S. technologies.
While export controls made Huawei a more robust competitor, they also hurt U.S. technology companies—reducing their sales to Huawei by $33 billion between 2021 and 2024—and they triggered retaliation from the Chinese government.
It’s time for the U.S. government to rethink the use of export controls on China, recognizing that this is a new era when the effect is just as likely to backfire and hurt American companies and jobs.