China's Huawei to start smartphone production in IndiaPhoto: Open Grid Scheduler (Public domain)

Huawei’s chief financial officer, Meng Wanzhou, was arrested in Canada earlier this month, sparking renewed tension between the U.S. and China over trade.

China's Huawei to start smartphone production in IndiaPhoto: Open Grid Scheduler (Public domain)

The arrest was made as part of a U.S. investigation into allegations the company has been deliberately evading U.S. sanctions against Iran. However, the Chinese government denounced the arrest and retaliated by detaining Canadian officials based in China.

Huawei, the second largest smartphone manufacturer in the world after Samsung, is central to China’s “Made in China 2025” initiative. Which aims to modernise the country’s industry, focusing on developing high-tech sectors and transitioning towards an advanced manufacturing economy. The company also plays a key role in research and innovation, particularly in the development of emerging technology like wireless 5G services.

Given the economic and cyber-security threats that this poses to the U.S., the White House are taking steps to pressure major Chinese tech firms like Huawei. This includes banning the public sector procurment of tech from top Chinese manufacturers (in the U.S.), as well as forbidding U.S. government agencies to work with companies that operate with this tech.

This could have a dramatic impact on Chinese industry, which has strong links to the US. As a result shares in major Chinese firms including Huawei have suffered, prompting further tensions between China and the U.S.

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