Huawei adds its name to the mass IT companies’ boycott of Russia. Find out what happened below!
Huawei joined the boycott of Russia
So far, many IT enterprises have announced their office closure in the Russian market. Previously, Huawei has halved its mobile supplies to the country, citing the current situation might affect the total sale and its business. However, things took another turn when the Chinese firm announced its plan to close the Russian office entirely. They have stopped any orders through websites and offline channels.
Moreover, the corporate office dealing with telecommunications and networking equipment is getting cleared out soon. Regarding the employees, all Chinese ones and a part of the local specialists team will leave the country. Meanwhile, the rest will be on vacation status. There is also talk about stopping their contract with all Russian telecom operators. Huawei signed the deal for their supplies of network and server equipment.
In Russia, many telecom operators have chosen Huawei’s solutions for their service. The Chinese giant now accounts for 33% of Russian cellular base stations, covering the entire country. As a result, the new decision can bring a negative impact on Russia. We expect the development and maintenance of current projects like 5G will slow down. To avoid more significant effects from the ongoing war between Russia and Ukraine, Huawei needs to be smart about its next move. There is a high chance they can arrange for new supply through third countries. Moreover, they need to create workarounds to use American tech in order to bypass the sanctions.
History
If you remembered, Huawei has run into problems with the United States before. They now allowed the company to receive equipment from international companies with licenses. However, this can stop soon due to the war. Another route we can see is Russian telecom operators switching to other companies like Ericsson. On the other hand, the consumer goods market for tech devices remains unchanged.
