The United States has recently taken steps to reduce China’s dominance in the technology sector by revoking certain licenses that allowed the sale of chips to Shenzhen-based Huawei. This decision is part of an ongoing evaluation by the US of how to protect its national security interests in the face of a rapidly evolving digital threat landscape.

In 2019, Huawei was added to an “entity list” due to concerns about its ties to the Chinese military, despite facing stringent trade regulations. Despite these challenges, Huawei has shown resilience, particularly in its consumer business. The recent launch of the Mate 60 Pro, which uses chips from top Chinese chipmaker SMIC, has contributed to the company’s global success.

Huawei may not be among the top five smartphone brands for global shipments, but it saw a significant 70% year-on-year increase in shipments in mainland China in Q1 2024. This rise in market share highlights the diverse digital landscape in China, with OPPO, HONOR, vivo, and Apple each accounting for between 15-16% of the market.

The US government’s actions reflect escalating tensions between the two nations. President Biden recently signed legislation that could potentially lead to a ban on TikTok unless it separates from its Chinese parent company. These intertwined economic and geopolitical interests have become increasingly apparent in recent years, prompting the implementation of restrictions. However, the slow development of these bans has allowed both sides time to adjust, leading to limited effectiveness.

The decision by the US Department of Commerce to revoke certain licenses that allowed the sale of chips to Huawei is part of a larger effort by the US government to reduce China’s dominance in the technology sector. While this move may have some impact on Huawei’s ability to source components for its products, it is unlikely to significantly alter the company’s overall position in the global smartphone market.

Instead, Huawei has shown resilience and adaptability in response to these challenges. The recent launch of the Mate 60 Pro demonstrates this ability to innovate and compete with top Chinese chipmakers like SMIC. Additionally, Huawei’s success in mainland China highlights