The US move to blacklist Huawei and cut it off from American technologies, including software and chips, could hinder the deployment of 5G networks globally and impose heavy costs on some telecommunications companies, analysts at Barclays warned in a recent report, cited by the City AM media outlet.
The analysts indicate that companies that used Huawei equipment in the construction of 4G networks may have to spend extra money and time to upgrade them to 5G using technologies obtained from other tech companies. Such a scenario could take place in Europe, which has been pressured by the US to abandon Huawei equipment.
Telecom companies using Huawei could also face challenges due to a lack of hardware needed for the maintenance of existing networks based on the Chinese company's equipment, the report further indicates.
While the investment bank Jeffries predicts that the US won't face such problems, its analysts indicate that China itself might not be so lucky. They suggest that with the US ban in place, Huawei won't be able to provide 5G coverage to all of China.
The Chinese tech giant has recently been targeted by Washington, which has barred the company's equipment from the US and banned it from obtaining "sensitive" software and hardware of American-origin, citing security concerns. This has led US chip makers and Google to cut ties with Huawei and suspend supplies.
The US has also pressured European states to prevent Huawei from building their 5G networks. Washington has threatened to suspend intelligence sharing if EU countries defy this warning. The pressure arose as several EU countries, namely the UK, Germany, and France were ready to give a greenlight to the construction of 5G networks using Huawei's equipment.
The Chinese tech giant has criticised Washington's moves and vowed to contest the decisions in court. The lawsuit is also supported by the Chinese government. Huawei insists that Washington's claims about the company installing backdoors in its equipment on behalf of Beijing are completely false.