Investors have already started to worry that Apple may get caught in the crossfire of the Trump administration's attacks on Huawei and the broader US-China trade war. But the iPhone maker may not be the only tech giant that suffers collateral damage in the conflict, warns Gregor Berkowitz, a longtime tech-industry consultant. The administration's moves against Huawei could end up giving a leg up to the Chinese competitors to US behemoths such as Google and harm those tech giants' ability to compete, particularly in the developing world, he said. "There are many secondary effects" of the attack on Huawei "that are maybe more significant than the primary effect," Berkowitz said. US officials have charged that units of Huawei have conspired to steal trade secrets from T-Mobile, and have cautioned that the company's equipment could be used to spy on people and companies on behalf of the Chinese government. Last week, as part of its targeting on Huawei, the administration issued an order barring US companies from supplying Huawei with their products and services. That move not only barred smaller component makers from dealing selling their products to the Chinese company, but it also will prohibit Google and other tech companies from offering their software to Huawei. On Monday, the US government gave Huawei a temporary repreive from the restrictions, allowing it to continue to work with US companies to serve current customers. Read this:President Trump's national emergency likely won't stop you from buying a Huawei phone, much less an iPhone. Here's what it means for you. As part of the restrictions, Huawei will no longer be able to use the Google-supplied version of the Android operating system, nor will it be able to offer its phone users access to the Google Play app store. The company has said that it is working on its own homegrown alternatives to both. Chinese alternatives to Google and Facebook could get a boost Huawei is the second largest smartphone maker. Although its phones haven't gotten much traction in the US, they're popular in China and in many other countries around the world. Inside China, Huawei already offers local alternatives to US tech services, because Google's Play store and many US apps and services — such as Facebook and Uber — are unavailable there. But now that it's unable to work with US companies, Huawei will likely start promoting those Chinese alternatives outside of China, Berkowitz said. "People like Google begin to lose out, because Huawei will point its search [box] at Baidu, not at Google," Berkowitz said. He continued: "As the conflict or trade war between the US and China [heats up] ... we're going see that set of Chinese suppliers begin to spread throughout the world." Many US tech companies have struggled to gain traction in China or, finding themselves in untenable positions due to the country's censorship and domestic surveillance policies, have abandoned the market. Now, they may find th
A longtime industry expert explains why Trump's attack on Huawei could end up hurting Google and oth
Investors have already started to worry that Apple may get caught in the crossfire of the Trump administration's attacks on Huawei and the broader US-China trade war. But the iPhone maker may not be the only tech giant that suffers collateral damage in the conflict, warns Gregor Berkowitz, a longtime tech-industry consultant. The administration's moves against Huawei could end up giving a leg up to the Chinese competitors to US behemoths such as Google and harm those tech giants' ability to compete, particularly in the developing world, he said. "There are many secondary effects" of the attack on Huawei "that are maybe more significant than the primary effect," Berkowitz said. US officials have charged that units of Huawei have conspired to steal trade secrets from T-Mobile, and have cautioned that the company's equipment could be used to spy on people and companies on behalf of the Chinese government. Last week, as part of its targeting on Huawei, the administration issued an order barring US companies from supplying Huawei with their products and services. That move not only barred smaller component makers from dealing selling their products to the Chinese company, but it also will prohibit Google and other tech companies from offering their software to Huawei. On Monday, the US government gave Huawei a temporary repreive from the restrictions, allowing it to continue to work with US companies to serve current customers. Read this:President Trump's national emergency likely won't stop you from buying a Huawei phone, much less an iPhone. Here's what it means for you. As part of the restrictions, Huawei will no longer be able to use the Google-supplied version of the Android operating system, nor will it be able to offer its phone users access to the Google Play app store. The company has said that it is working on its own homegrown alternatives to both. Chinese alternatives to Google and Facebook could get a boost Huawei is the second largest smartphone maker. Although its phones haven't gotten much traction in the US, they're popular in China and in many other countries around the world. Inside China, Huawei already offers local alternatives to US tech services, because Google's Play store and many US apps and services — such as Facebook and Uber — are unavailable there. But now that it's unable to work with US companies, Huawei will likely start promoting those Chinese alternatives outside of China, Berkowitz said. "People like Google begin to lose out, because Huawei will point its search [box] at Baidu, not at Google," Berkowitz said. He continued: "As the conflict or trade war between the US and China [heats up] ... we're going see that set of Chinese suppliers begin to spread throughout the world." Many US tech companies have struggled to gain traction in China or, finding themselves in untenable positions due to the country's censorship and domestic surveillance policies, have abandoned the market. Now, they may find th
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