Samsung Shares Soar as US Bans Technology Transfer to Rival Huawei

Last week, US President Donald Trump issued an executive order banning the Chinese company Huawei from the American market for allegedly posing a national security risk. The Commerce Department, however, issued a statement saying that the implementation of the ban will be delayed for another 90 days.

Samsung Electronics shares surged more than four percent on Tuesday as US tech giant Google cut ties with the South Korean tech giant’s main rival, Huawei. Google, whose Android operating system is used by most of the world’s smartphones, announced that it would sever ties with the Chinese company in order to comply with Trump’s executive order aimed at banning technology transfers to Huawei.
As Huawei will no longer have access to Google services such as Gmail or Google Maps, the sales of the company’s smartphones are likely to decline everywhere outside China.

“If you are in Europe or China and couldn’t use Google map or any Android services with a Huawei smartphone, would you buy one”? MS Hwang, an analyst at Samsung Securities, told Bloomberg News.

Samsung accounts for some 23 percent of the world’s smartphone sales, while Huawei makes up 19 percent of the market.

Trump issued an executive order on 15 May, essentially banning Huawei from the US market for purportedly posing a national security risk.
The Commerce Department, however, said in a notice posted Monday that the US government will delay the implementation of the ban on trading with the Chinese telecom giant for another 90 days.
Huawei has recently faced allegations that the company is linked to the Chinese government and has spied on its behalf. Although both Huawei and the Chinese government have firmly denied these claims, Australia, Japan, New Zealand and the United States banned Huawei from participating in government contracts in 2018.

Source: News Agencies