Analysis of Impact of Sino-U.S. Trade Frictions: Case Study of Huawei

Beginning in 2018, the U.S. imposed a series of tariffs on imports from China. In May 2019, the Chinese multinational technology company Huawei was banned from doing business with any organization that operated within the U.S. This case study examines the impact of these recent Sino-U.S. trade frictions on Huawei and analyzes their response strategy. I find that Huawei saw a decline in market share in the United States and in EMEA markets as well as a substantial revenue drop from those markets, however they were able to maintain global revenue by increasing sales domestically. Additionally, Huawei’s continued investment in research and development, particularly in the 5G space has the potential to lead to increased innovation and future market share.