Huawei Dominates MWC Mobile Tech Fair Despite US Sanctions

A group of Chinese companies, led by tech giant Huawei, are appearing at the world's biggest mobile trade show, aiming to show their power as Western countries worry about cybersecurity and rising tensions with the United States have blacklisted Huawei. TikTok because of spy balloons and computer chips.

After three years of disruption by the pandemic, tens of thousands of people from the tech industry descended on Barcelona on Monday for the launch of MWC, formerly known as Mobile World Congress, the annual industry show that brings together makers of new devices and telecom executives. . to present the browse. The latest network hardware and software.

"China is very close," John Hoffman, CEO of the wireless industry trade group and GSMA event organizer, told reporters.

Among the 2,000 exhibitors and sponsors, 150 Chinese companies are represented: Huawei Technologies Ltd. Be the most present. The smartphone and networking equipment maker is expanding its footprint by 50% year-on-year, taking up most of the sprawling showroom at Barcelona's Fira convention center, organizers said.

It is notable that Huawei finds itself in the middle of a geopolitical battle for global technology dominance that has crippled parts of its business due to Western sanctions.

Three years ago, the United States successfully pressured European allies such as Britain and Sweden to ban or restrict Huawei devices from their phone networks over fears that Beijing could use them for cyber attacks or to sabotage critical communications infrastructure, charges Huawei has repeatedly denied. : Japan, Australia, New Zealand and Canada have taken similar measures.

Huawei declined to comment ahead of the show. Danish telecommunications consultant John Strand said the company's over-presence at the show was a sign of resistance.

Huawei wants to "show Biden the middle finger," Strand said of the US president. The company's message is: "Despite the American sanctions, we are alive and well."

Technological tensions between the US and China have escalated.

The downing of a Chinese spy balloon by a US fighter jet has sparked heated arguments between Beijing and Washington in recent weeks.

US authorities have banned TikTok from issuing devices to government workers over concerns that the popular Chinese video-sharing app poses privacy risks or could be used to spread pro-China stories.

The US is also trying to limit China's access to advanced semiconductor manufacturing equipment, involving key allies Japan and the Netherlands.

It follows the MWC trade show four years ago, which became a battleground between the US and China over the security of Huawei and next-generation wireless networks. In a keynote speech, a senior Huawei executive criticized the United States for trying to prevent allies from using the company's devices.

Huawei is not going away, and the controversy continues. Last month, Washington expanded the sanctions to include new restrictions on Huawei exports of less advanced technology components.

However, the company has maintained its position as the world's leading network equipment maker for sales in China and other markets where Washington has been unable to convince the government to boycott the company.

Strand, who has attended MWC for 26 years, said Huawei wants to show the world that it is moving away from building the first network equipment — the hidden pipes like base stations and antennas that connect mobile devices to the world. A versatile technology provider.

The company is reinventing itself by providing hardware and software for freight ports, self-driving cars, factories and other industries that it hopes will make Washington less vulnerable.

"Since MWC is a global event, they (Huawei) will want to communicate about it and show that they are still a major player in the telecommunications and high-tech industry," said Thomas Hewson, senior analyst at Forrester Research.

Huawei also makes smartphones, but sales outside China have fallen after Google Maps, YouTube and other services are typically pre-installed on Android devices.

"The Huawei consumer brand has collapsed in Europe," Hewson said. At MWC, Huawei may announce new consumer smartphones and new consumer devices, but the brand has lost momentum, and those announcements are mostly aimed at fast-growing markets outside the US and Europe.

Huawei is part of a larger Chinese delegation whose presence is increasing as China lifts all travel restrictions related to COVID-19. ZTE, another Chinese tech company approved by the US, plans to launch products at MWC.

Chinese smartphone makers Honor, Oppo and Xiaomi will have a strong presence, said Ben Wood, principal analyst at CCS Insight. Honor was Huawei's budget brand but was sold separately from its parent company in hopes of boosting sales in 2020.

"The lifting of Covid restrictions in China has allowed these manufacturers to fully participate in the show," Wood said. "They all want to establish themselves as the 'third alternative' to Apple and Samsung in the European market and see MWC as an important event to achieve this."

Before the 2019 pandemic, MWC attracted 109,000 people, of which 6% were from China. The event was canceled in 2020 and held on a limited basis in 2021. Last year's event attracted 60,000 visitors but was overshadowed by the omicron version of COVID-19.

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