The Coronavirus And Restrictions Favor Huawei’s Expansion In Latin America | WABNEWS

SAN FRANCISCO, USA – The growth that the Chinese telecommunications company Huawei has had at the center of government operations in Latin America and other developing economies could be due to the arrival of the new coronavirus and restrictions from developed countries, according to experts . Juan Francisco Argüello, project manager for Latin America at Teoco Corporation, explained to the WABNEWS that from his point of view the adversities generated by the pandemic led Huawei to adopt “significant changes in its business model.” Part of these changes gave priority to “outsourced technology” or what is known as “the cloud”, obeying a market demand. The expert recognizes that the amount of data that organizations currently handle is too large and that “storing or processing the information” implies an excessive cost for companies. Sorry, but your browser cannot support embedded video of this type, you can download this video to view it offline. His vision coincides at some point with the report “Huawei Global Cloud Strategy – Economic and Strategic Implications”, published by the Center for Strategic and International Studies (CSIS), which brings together a group of Washington experts. The specialists identified that until April 2021, despite suspicions of espionage that weigh on the company, it has made about 70 agreements in 41 countries with foreign governments or state companies (SOE) for cloud infrastructure and electronic government services. The CSIS investigation highlights, -as Argüello highlights- that Huawei sees its business in the cloud as “a strategic priority.” But the investigation notes that this is due to US sanctions that limited mobile semiconductor access for its 5G networks. It also indicates that this same work model was boosted with the arrival of the pandemic, which forced the global adoption of services “in the cloud to accelerate from one to three years and increased the income” of Huawei. Recently, the vice president of Huawei said that they had grown by 168 percent during 2020. Huawei without processors for its cell phones due to US sanctions Washington last year blocked Huawei’s access to US components and technology. Long-term digital transformation Jorge Fernando Negrete, president of Digital Policy Law, stated that the Chinese telecommunications company “has committed to the digital transformation of Latin America. They see it as a huge opportunity due to the changes caused by 5G technology in all countries. sectors of the economy “. Negrete, who participated in recent days in a virtual forum on the telecommunications sector in Latin America, highlighted that the two major contributions of the company are “innovation and adaptability” without the latter affecting the “financial statements” of the companies. companies with which you sign contracts. Something that apparently has permeated countries such as Mexico, Ecuador, Brazil and Argentina, among others, where Huawei does business with their governments. According to the report, most of the deals share certain characteristics, such as that 72% are made in middle-income countries and partially free or unfree. And that in 60% of these deals, Huawei packages the delivery of hard infrastructure with services and offers favorable financing from so-called policy banks. These banks include the Export-Import Bank of China (Chexim), the China Development Bank (CDB), and the Agricultural Development Bank of China (ADBC). The United States and allies strangle Huawei’s growth The Trump administration’s harsh stance against the Chinese cell phone company Huawei could pale in the face of the Biden administration’s policy. Far from easing restrictions, Biden seems set to tighten them. And the effect on the company has been devastating. What are your services? Huawei’s cloud infrastructure ranges from small modular data centers the size of a shipping container to multi-level buildings packed with servers. Its e-government services include among others the digitization of documents, national identification systems, tax services, crisis communications and elections. In the latter, the company has experienced complications due to security, operational or financial issues in 16% of the cases. What about other telecommunications companies? According to the document, although countries like the United States and its allies already have superior cloud products to offer, they have not yet expanded financing for infrastructure and technical assistance. Nor have they said that they intend to remove and prevent regulatory barriers to compete more effectively in developing markets. However, the United Kingdom and the United States have previously warned and expressed concern about the growth of the Chinese telecommunications giant, they believe that their strategy could allow Beijing to collect important and sensitive information for “coercive leverage”. Something that apparently does not currently concern Latin America, which is struggling with the deepening of the economic crisis after being hit by COVID-19, which is at its highest peak of contagion in that region. The US president recently said that he had spoken with his South Korean counterpart Moon Jae-in about 5G technology and “shared values ​​that include strengthening cyber security.” Connect with the WABNEWS! Subscribe to our YouTube channel and activate notifications; or, follow us on social networks: Facebook, Twitter

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