The Chinese telecom is worth more than $120 billion. But for how long?
Western intelligence agencies say Huawei will inevitably act in the interests of China’s intelligence service, the Ministry of State Security. Now sanctions imposed by the Trump administration will effectively cut off Huawei from the world’s semi-conductor market. Without the basic components of modern networks, Huawei may only be able to stay in business for six more months.
The company’s $122 billion market cap? It could go up in smoke. Poof. The Chinese government may step in to help. But how?
In boardrooms and government offices around the world, the new rules sparked frantic discussions about whether the move would deliver a fatal blow to the $122bn company, how quickly Huawei might fold, and what the collapse of the world’s largest telecoms equipment provider would mean for networks in 170 countries that run on its hardware.
Source: US-China: is Huawei ‘too big to fail’? | Financial Times