Abstract

This document discusses the Chinese telecommunications firm Huawei and its market opportunities in the Gulf Cooperation Council (GCC) are discussed in comparison to the recent sanctions taken against the firm by the US government and the ongoing US-China trade war. The analysis first offers some background information of the US-China trade war that has been rattling the global financial markets for months. This is followed by the examination of the sanctions taken against Huawei by the US government and the reasons for them. Into this milieu, potential market opportunities for Huawei are explored within the GCC and especially its leading member-state markets such as Saudi Arabia. The observation is made that despite the US sanctions, Huawei is certainly the leading telecommunications equipment provider internationally. These attributes of the firm's business case provide it with the commercial heft necessary in order to convince the GCC and its member-states that it is a safe harbor investment for their 5G network build-out. The recommendation is made that Huawei make price concessions to the GCC and its member states in order to convince them to offer exclusive 5G vendor contracts. This exclusivity in the market would stabilize Huawei's revenues over the long-term.Keywords: GCC Market, US-China Trade War, 5G TechnologiesJEL Classifications: M3, O3DOI: https://doi.org/10.32479/irmm.8206

Highlights

  • This paper discusses in some degree of depth the issue of Huawei and its market opportunities in the Gulf Region

  • At issue is what market opportunities Huawei has in the Gulf Region where the Gulf Region is characterized primarily by the Gulf Cooperation Council (GCC) market

  • The GCC comprised of six member states led by Saudi Arabia

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Summary

INTRODUCTION

The GCC comprised of six member states led by Saudi Arabia. Combined, these six member states constitute the largest and most advanced markets in the Middle East. These six member states constitute the largest and most advanced markets in the Middle East They have taken a proactive approach to adopting 5G network technologies through offering market-based incentives, state supported grants and so on. The US government has implemented numerous sanctions against Huawei under the pretense that its executive leadership lacks the autonomy to operate independently of the Chinese government. This lack of perceived autonomy is largely due to its founder’s close relationship with the Chinese military. Despite these difficulties, this report delves into the unique features that make Huawei such a dominant competitor in the 5G industry and in the telecommunications industry in general

THE US-CHINA TRADE WAR
THE GCC AND THE SMARTPHONE
HUAWEI AND ITS BUSINESSES
WEATHERING US IMPOSED
Findings
CONCLUSIONS
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