Affiliate links on Android Authority may earn us a commission.Learn more.
Huawei’s problems are China’s problems, and the country is now reacting
August 16, 2025
Over the past decade,Huaweihas turned from a promising Chinese telecommunications company into a global powerhouse. HUAWEI is currentlythe second-largestsmartphone manufacturer in the world, and could very likely become the top dogby the end of this year.
HUAWEI has become so big that the company’s financial reports and China’s economy are becoming ever-more linked together. If HUAWEI struggles, China struggles.
For example, according to data from the Internet Society of China (viaSouth China Morning Post), services and products in China that rely on an internet connection were worth 5 trillion yuan (~$741 billion) in 2018, accounting for about six percent of the entire country’s GDP. HUAWEI products likely make up an enormous chunk of that six percent.
That’s why China has a genuine vested interest in making sure HUAWEI is successful. Afterthe laying of formal chargesagainst HUAWEI from the United States government yesterday, China itself needs to react accordingly.
As such, China recently pledged to ramp up efforts within the country to increase HUAWEI’s profits. Those efforts will include:
In other words, China knows that HUAWEI is going to struggle for the foreseeable future when it comes to global expansion and is responding by increasing domestic consumption of HUAWEI products.
Of course, one of the main reasons there’s so much going against HUAWEI throughout the world is the assumption that the company is secretly tied to the Chinese government and builds “back doors” into its products which could be used for spying on foreign countries. The fact that China is responding this way to HUAWEI’s problems doesn’t exactly help in dissuading other countries from thinking that the two entities are so intertwined.
The term “too big to fail” comes to mind when thinking about this relationship, and we all know how well that phrase is viewed here in the United States. However, it’s still unclear just how much these problems HUAWEI faces around the world will affect its bottom line, considering it’s done nothing but grow every quarter for years.
Regardless, HUAWEI (and thus, China) is on its toes asprevious issues surrounding ZTEshow that the U.S. has a substantial amount of power when it comes to hurting Chinese companies. It will be interesting to see how this pans out.
NEXT:HUAWEI says it could become #1 smartphone maker in the world this year
Thank you for being part of our community. Read ourComment Policybefore posting.
