Huawei and the Gulf Region: Market Opportunities Despite the Ongoing US-China Trade War

This document discusses the Chinese telecommunications firm Huawei and its market opportunities in the Gulf Cooperation Council (GCC) are discussed in comparison to the recent sanctions taken against the firm by the US government and the ongoing US-China trade war. The analysis first offers some ba...

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Main Author: Fadye Saud Alfayad
Format: Article
Language:English
Published: EconJournals 2019-07-01
Series:International Review of Management and Marketing
Online Access:https://www.econjournals.com/index.php/irmm/article/view/8206
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author Fadye Saud Alfayad
author_facet Fadye Saud Alfayad
author_sort Fadye Saud Alfayad
collection DOAJ
description This document discusses the Chinese telecommunications firm Huawei and its market opportunities in the Gulf Cooperation Council (GCC) are discussed in comparison to the recent sanctions taken against the firm by the US government and the ongoing US-China trade war. The analysis first offers some background information of the US-China trade war that has been rattling the global financial markets for months. This is followed by the examination of the sanctions taken against Huawei by the US government and the reasons for them. Into this milieu, potential market opportunities for Huawei are explored within the GCC and especially its leading member-state markets such as Saudi Arabia. The observation is made that despite the US sanctions, Huawei is certainly the leading telecommunications equipment provider internationally. These attributes of the firm's business case provide it with the commercial heft necessary in order to convince the GCC and its member-states that it is a safe harbor investment for their 5G network build-out. The recommendation is made that Huawei make price concessions to the GCC and its member states in order to convince them to offer exclusive 5G vendor contracts. This exclusivity in the market would stabilize Huawei's revenues over the long-term. Keywords: GCC Market, US-China Trade War, 5G Technologies JEL Classifications: M3, O3 DOI: https://doi.org/10.32479/irmm.8206
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spelling doaj.art-f553b8a5780e47a4aa9e6fc6c761db572023-02-15T16:11:48ZengEconJournalsInternational Review of Management and Marketing2146-44052019-07-01944003Huawei and the Gulf Region: Market Opportunities Despite the Ongoing US-China Trade WarFadye Saud Alfayad0Business Department, Jubail University College This document discusses the Chinese telecommunications firm Huawei and its market opportunities in the Gulf Cooperation Council (GCC) are discussed in comparison to the recent sanctions taken against the firm by the US government and the ongoing US-China trade war. The analysis first offers some background information of the US-China trade war that has been rattling the global financial markets for months. This is followed by the examination of the sanctions taken against Huawei by the US government and the reasons for them. Into this milieu, potential market opportunities for Huawei are explored within the GCC and especially its leading member-state markets such as Saudi Arabia. The observation is made that despite the US sanctions, Huawei is certainly the leading telecommunications equipment provider internationally. These attributes of the firm's business case provide it with the commercial heft necessary in order to convince the GCC and its member-states that it is a safe harbor investment for their 5G network build-out. The recommendation is made that Huawei make price concessions to the GCC and its member states in order to convince them to offer exclusive 5G vendor contracts. This exclusivity in the market would stabilize Huawei's revenues over the long-term. Keywords: GCC Market, US-China Trade War, 5G Technologies JEL Classifications: M3, O3 DOI: https://doi.org/10.32479/irmm.8206 https://www.econjournals.com/index.php/irmm/article/view/8206
spellingShingle Fadye Saud Alfayad
Huawei and the Gulf Region: Market Opportunities Despite the Ongoing US-China Trade War
International Review of Management and Marketing
title Huawei and the Gulf Region: Market Opportunities Despite the Ongoing US-China Trade War
title_full Huawei and the Gulf Region: Market Opportunities Despite the Ongoing US-China Trade War
title_fullStr Huawei and the Gulf Region: Market Opportunities Despite the Ongoing US-China Trade War
title_full_unstemmed Huawei and the Gulf Region: Market Opportunities Despite the Ongoing US-China Trade War
title_short Huawei and the Gulf Region: Market Opportunities Despite the Ongoing US-China Trade War
title_sort huawei and the gulf region market opportunities despite the ongoing us china trade war
url https://www.econjournals.com/index.php/irmm/article/view/8206
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