China’s Huawei faces headwinds despite Biden election

Significance

Hoping for a combination of US leniency and developing homegrown capabilities, Huawei will seek to retain significant parts of its business.

Impacts

• The Huawei episode provides focus and clear objectives for China’s domestic semiconductor development programme.
• Foreign businesses are likely to be able to retain Huawei as a customer across a broad part of the firm’s activities.
• The US campaign against Huawei’s 5G infrastructure will have important ramifications in Europe and the global South.