2 ways Huawei could overtake competitors after addressing setbacks in 2020 - Business Insider

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Huawei's success in navigating the challenges of 2020 would increase pressure for the US to champion a competitor

to cheap capital, which will help it gain an edge over competitors that are chiefly concerned with weathering an economic downturn. Huawei's concentrated market share in China, which accounted for 59% of Huawei's total revenue in 2019, will help sustain cash flows in 2020. Last Thursday, China reported than 100 new daily cases of coronavirus, suggesting transmission could be slowing in the region while most other countries are still bracing for the pandemic's peak impact.

After the UK balked at US requests to bar Huawei networking equipment for 5G, US officials were said to have taking a controlling stake in a competitor, such as Ericsson or Nokia. While this still seems like a remote possibility, moves by Huawei to attain more favorable positioning in a tough economic situation could help make the case for some form of increased state support of competitors.

 

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