Trump is working to take this country back to the good old days of mercantilism when governments decided who would succeed and who would fail. Implementing tariffs was just the first act in his strategy to provide a supposed advantage to American companies. His latest act was far more blatant. He issued an executive order to prohibit Huawei from the United States market. In the aftermath of this executive order Google has revoked Huawei’s use of its services, including its Play Store:
President Trump issued an executive order last week banning “foreign adversaries” from doing telecommunication business in the US. The move was widely understood as a ban on Huawei products, and now we’re starting to see the fallout. According to a report from Reuters, Google has “suspended” business with Huawei, and the company will be locked out of Google’s Android ecosystem. It’s the ZTE ban all over again.
That’ll give a much needed boost to American device manufacturers, right? You know, all of those device manufacturers who manufacture their devices in China, where Huawei is headquartered. Because I’m sure this executive order won’t result in any reciprocation from the Chinese government.
But even if we set aside the likelihood of a Chinese retaliatory response, this executive order sends a rather clear message for companies headquartered outside of the United States. That message is that they shouldn’t rely on products or services from companies headquartered in the United States. Huawei can still use Android since it’s an open source project (a good reason to prefer open source code to closed source code) so it doesn’t have to write an operating system for its devices from scratch. It does have to figure out a replacement for Google’s proprietary bits though. There are several solid third-party clients available for Android that allow access to online calendaring, contacts, and e-mail services. Many of those clients are also open source. Huawei could utilize them in place of apps like Google Calendar, Google Contacts, and Google Mail (Google Maps is the tough one to replace but a third-party client could be written for it). So it would only need to worry about distribution and it has enough funding to build its own app store (it could also use something like F-Droid, but that’s unlikely). It could also make licensing money off of its app store by providing access to other Android device manufacturers who had their access revoked by Google due to an executive order.
Foreign companies aren’t going to stop doing business when the figurehead of the United States puts his signature on a piece of paper. They’re going to either make or buy replacements for everything can no longer use. If this behavior of barring foreign companies from business in the United States continues, companies headquartered outside of the United States are going to become more and more wary of relying on American products and services and instead seek foreign alternatives. American companies like Google will find themselves more and more isolated from the global market. The constantly dwindling market size will cause them serious economic hardship, which will translate into economic hardship for their employees.
Isolating domestic businesses from foreign markets is slow economic suicide.