Ripple prices up 11.1 percent but technically bearishCrypto–Fiat bridges important for XRP and cryptoTransaction levels up, volumes lower than Jan 10 Despite upbeat prices, Ripple (XRP) is technically bearish and yet to breach the 35 cents mark. From our previous XRP/USD iterations, once bulls find momentum and pump prices above 35 cents risk-off traders can begin making projections with first targets at 60 cents.Ripple Price AnalysisFundamentalsCrypto may be risky for some governments, but things are beginning to change. As some view them as property, charging capital tax gains on profits, others are warming up to the idea of blockchain as the next inevitable change that despite headwinds will eventually permeate to the mainstream. Malta is one of the many jurisdictions, and now Binance–the world’s largest exchange by adjusted volumes have bases in that country.Besides being a go-to platform for investors, it is also one of the few exchanges where users can purchase crypto with their Visa credit or debit cards. While many will be attracted to this feature, some Redditors claim that fees depends on volumes and some credit card companies may treat credit card purchases as cash advances which attract additional fees:“What about any credit card fees? I’ve heard rumors that credit card companies charge it as a cash advance, resulting in additional fees. This drastically changes my position on using credit cards to buy. Unless you can use a Visa pre-paid, the additional fees could be a dealbreaker.”All the same, thing is, this is an excellent deal for XRP and other crypto users who may not have time to make wire transfer more so when there is an opportunity to capitalize price moving news.Candlestick ArrangementsAt the time of writing, XRP is up 11.1 percent and 3.2 percent in the last 24 hours. No specific XRP or Ripple related news is pumping prices. So, we reckon that XRP prices are up partly because of resurgent Bitcoin prices and new streams of supportive fundamentals.Although prices are up, our trade conditions are not yet valid, and prices are trading below 35 cents–the 50 percent Fibonacci retracement level of Dec 2018 high low.Unless otherwise there are price upswings that trigger risk-off positions, we recommend patience despite Feb 18 rally confirming the double bull reversal pattern of Feb 8. It’s only after when XRP bulls drive price above Jan 14 highs that risk-off traders can buy on dips with first targets at 40 cents and later 60 cents–Dec 2018 highs.Technical IndicatorsVolume is on the rise, and Feb 18 bar had high volumes–52 million, above those of Jan 30–49 million and even those of Feb 8–35 million. Technically, this is bullish, and in an effort versus result analysis, buyers may have the upper hand. However, it would be perfect if Feb 18 bar had high volumes above Jan 10–83 million.
Archives for February 2019
Talks are underway to merge Amazon’s Chinese venture with NetEase-owned Kaola, according to business publication Caijing. Kaola is a Chinese e-commerce firm which specializes in selling imports.
The business publication added that an agreement had been inked late last year amidst difficult negotiations. NetEase is listed on the Nasdaq and boasts a market cap of slightly over $30 billion. Besides Kaola, the Chinese tech giant also develops internet content, including games for personal computers and mobile devices.
Amazon China Chooses to Compete in a Niche Rather than Target Alibaba Directly
Currently, Kaola is the biggest Chinese e-commerce firm that deals in imported goods, according to Reuters. Alibaba’s Tmall Global as well as JD Worldwide, follow closely behind. Kaola imports more than 5,000 brands from 80 countries. The imports are largely bought directly from overseas manufacturers.
The development comes at a time when Kaola is said to be requiring an infusion of investment. Yang Zhaoyu, the Chief Financial Officer of NetEase, recently stated in a conference call that the priority lay in expansion (loosely translated):
“At present, the company is still focused on increasing the scale of e-commerce business, expanding the market total, enhancing brand awareness and user reputation. The current goal at this stage is not to increase gross margin.”
In China, Amazon is Playing a Game it Hardly Knows – Catch Up
The merger talks could be seen as a last-ditch attempt by Amazon to catch up to local e-commerce operators. Unlike in its home country where Amazon is the undisputed e-commerce leader, the internet retailer is lagging behind in China. There, it is occupying the seventh position with a 0.7% market share, according to eMarketer.
This contrasts sharply with Alibaba, China’s biggest online retailer, which has an imposing 58.2% market share. China’s second-largest e-commerce firm, JD.com, has a market share of 16.3%.
With China being one of the world’s most promising retail markets, Amazon knows it cannot give up without a fight. According to eMarketer, China will – for the first time ever – topple the United States as the top retail market in the world this year.
“We expect China’s total retail sales will grow 7.5% to $5.636 trillion in 2019. In contrast, US retail sales will grow 3.3%, reaching $5.529 trillion. Growth rates are slowing for both countries, but China’s growth rate will exceed that of the US through 2022.”
China Dominates World’s E-Commerce Market
Notably, e-commerce sales in China will grow to nearly a third of all retail sales this year to exceed $1.9 trillion. This is not only the highest rate globally but 55.8% of the world’s online retail sales will be in China. In the United States, e-commerce will only comprise slightly under 11% of all retail sales.
The rising retail sales in China are attributed to increasing incomes as millions of its people join the middle class. For Amazon, this is not an opportunity to be missed.
Amazon Image from Shutterstock
Apple, the $801 billion electronics giant, is reportedly initiating major changes in its executive team by altering roles and establishing new strategies.
According to The Wall Street Journal, the move is a response to the lackluster sales figures of the iPhone in key markets including China.
Last month, Apple CEO Tim Cook released a public letter to investors describing the company’s struggle in China, mainly attributing it to geopolitical risks including the trade war with the U.S.
Some analysts stated that the lower-than-expected sales of the company’s flagship product were largely triggered by the plateauing smartphone technology development.
Smartphones have become exceedingly sophisticated in the last few years and as such, fewer users now feel less compelled to pay a hefty price to acquire new models.
Apple Figured Out the Problem But its Solution is Questionable
Former employees of Apple have reportedly said that CEO Tim Cook has been expecting smartphone technology development to plateau since more than nine years ago.
Apple analyst and Loup Ventures managing partner Gene Munster told WSJ that Apple is preparing for the next growth phase of the company after the era of the iPhone.
“This is a sign the company is trying to get the formula right for the next decade. Technology is evolving, and they need to continue to tweak their structure to be sure they’re on the right curve,” Munster said.
To penetrate into highly competitive markets like China with the iPhone, Apple has had two choices: lower the pricing of its iPhone to compete against alternatives like Huawei or adapt to the Chinese market and undergo significant changes.
Neither has been a viable option for Apple which prioritizes branding, technological development, and premium models.
As former Apple retail executive Carl Smit said last month:
They’re not adapting quick enough. These apps and systems are how people communicate in China, and if you don’t have seamless integration, the Chinese manufactures have an edge.
The solution Apple has come up with to set up the company for the next decade is its services business.
The Apple App Store, iTunes, and Apple Pay are solid, widely utilized, and competitive platforms used by hundreds of millions of users.
By 2020, Morgan Stanley expects its services business to reach $50 billion in sales, which could replace iPhone sales as the company’s main revenue driver, which is what Apple would want in the long-term.
The hurdle Apple has to go through in the upcoming years is the exponentially growing user bases of competing platforms in the likes of Spotify and Netflix that dominate the streaming business.
Apple is planning to spend over $1 billion on original shows by featuring actresses like Reese Witherspoon to bump up its streaming venture.
But, 9 out of 10 consumers in the U.S. already utilize Netflix for streaming and strong alternatives such as Amazon Prime Video and Disney’s new streaming business are on the way up.
Jonathan Pirc, Founder and Managing Partner of Lab42, told Forbes:
On average, consumers use between two and three streaming services, and one of them is almost always Netflix. Even with multiple streaming services available, Netflix has clearly staked out the dominant position, with nearly 9 out of 10 American streamers using Netflix.
Even when consumers use a variety of streaming services, Netflix remains the most popular. It’s a testament to not only being one of the first to market, but also their innovation and investment in original content.
Apple Has a Strong Chance
Apple has the platforms, applications, tools, resources, and a loyal consumer-base to expand its services business and compete against dominant forces like Spotify, Netflix, and Amazon Prime Video.
But, some of the concerns from analysts stem from the thought that the company may have started a little too late.
Bitcoin prices up 8.3 percent in the last weekAdoption levels could be pumping pricesTransaction volumes on the rise Good news is bulls are back. Even with increasing prices, investors and traders have their eyes set on adoption trends. Encouragingly, adoption is on the rise, and now that our previous Bitcoin (BTC) trade plans are live, odds are the next wave of bulls will drive prices towards $6,000.Bitcoin Price AnalysisFundamentalsThere is an expansion. It seems like the precipitous rise and eventual fall of BTC prices did more good than bad. Yes, prices fell to record lows, and at some point, industry commentators, as well as traders, had strong fundamental reasons to believe that Bitcoin–will despite the fanfare drop, to $3,200 and sub-$2,000 levels.However, that has not been the case. It’s a recovery, and as prices bottom up, Bitcoin is surely and methodically matching towards its ultimate objective of being a global reserve currency. Skeptics may call this a pipe dream but when we factor in the cyclic nature of prices, the enormous strides made in the last decade and the ballooning fundamentals factors, there is a strong case to argue that Satoshi’s dream wasn’t narrow.Aside from price action, we note that regulators are thawing to the idea of BTC and the more open up their tax lines partnering with crypto payment processors as BitPay, demand for the coin will keep swelling. Add that to developments like Trading View shifting away from fiat and denominating their premium plans in BTC and Domino’s Pizza accepting BTC via the ever-growing Lightning Network, Bitcoin medium of exchange capability is revealed.Candlestick ArrangementCompared to other coins, BTC is under-performing. At spot rates, the currency is changing hands at $4050–data streams from BitFinex and up 8.3 percent in the last week. It may appear, but Bitcoin (BTC) price swings usually have a magnifier effect on altcoin prices.Because our trading plans as laid out in previous BTC/USD price analysis are now valid, and prices are trending above $3,800 minor resistance and buy trigger line at the back of decent, above average volumes, risk-off traders can fine-tune entries in lower time frames.That means every price dip is technically a buying opportunity with the first target at $4,500. On the other hand, risk-averse, conservative type of traders can wait for high-volume expansion above $4,500. From candlestick arrangements and Fibonacci rules, odds are any break above $4,500 could finally thrust prices to $4,500–$6,000 zone.Technical IndicatorsEndorsing our outlook is Feb 18 bull bar. Volumes backing this rally is above average at 37k exceeding those of Feb 8 and that of Jan 10.
Canadian law firms Miller Thomson and Cox & Palmer will represent as many as 115,000 customers of Canadian crypto exchange QuadrigaCX in the coming weeks.
Nova Scotia Supreme Court Judge Michael Wood ruled Tuesday that the firms would get the nod after nearly a week’s worth of deliberations.
In his ruling, Wood explained that both Miller Thomson and Cox & Palmer have “extensive insolvency and [Companies’ Creditors Arrangement Act] experience,” while Miller Thomson also has experience with cryptocurrency-related proceedings.
He also noted that the firms’ proposal was “thought out carefully with a view to minimizing costs.”
Miller Thomson is now tasked with collecting information about each of the possible creditors, including contact information and claim amounts. While the firms will not be immediately filing a class-action lawsuit due to a stay of proceedings granted at the beginning of the month, they can lay the groundwork for any future lawsuit.
The stay of proceedings is currently set to expire on March 7, with a hearing planned for March 5 to update the court on what progress Quadriga and its court-appointed monitor, Ernst & Young (EY), have made in their attempts to recover or otherwise raise $196 million – the total amount the exchange owes its users, according to various court filings.
It is possible that Quadriga and EY will file for an extension to the stay, though it is unclear whether Judge Wood will approve it.
QuadrigaCX first hinted at signs of trouble last month, when it announced its founder and CEO, Gerald Cotten, died of complications from Crohn’s disease in December 2018.
The exchange later explained that Cotten was the only individual to know the private keys to Quadriga’s cold storage wallets, meaning no one could access $136 million in cryptocurrencies stored offline.
The exchange filed for creditor protection, giving it a brief reprieve to try to recover its missing cryptocurrencies, unlock a further $53 million in fiat held by payment processors and possibly even sell its trading platform.
So far, Quadriga has not had any success in recovering the frozen crypto, and even lost another 100 bitcoin earlier this month when it “inadvertently” sent them to cold wallets it cannot access. The exchange did not explain how this happened.
While blockchain analysis has hinted at some of the wallet addresses the exchange is using, neither Quadriga nor EY has confirmed which addresses actually belong to Quadriga.
Quadriga Fintech Solutions … by on Scribd
Nova Scotia Supreme Court image by Nikhilesh De for CoinDesk
Ethereum mining pool Sparkpool received a payout of over 2,000 ETH (worth $300,000) just for mining one block on the ethereum blockchain Tuesday – a figure that’s about 600 times the network’s standard block reward.
Miners who secure blocks are programmed to be awarded 3 ETH (about $500) for every new transaction block added to the ethereum blockchain. On top of this, there is also a small payout attached to transactions incentivizing miners to validate and include new transactions into a mined block.
Yet, with only 210 validated transactions, Sparkpool received 2,103.1485 ETH at block number 7,238,290, according to data from ethereum block explorer Blockscout.
As highlighted on Twitter by Jimmy Zhong – co-founder of decentralized application platform IOST – the strange activity could be seen as a random fluke, with one ethereum user (or perhaps multiple) accidentally attaching abnormally high transaction fees to their payments.
Alternatively, it could be seen as a sign of goodwill from an anonymous supporter of the ethereum mining community, which in recent days has been divided over a contentious proposal to change which type of mining chips can be employed by miners seeking to compete for rewards.
Others suggested it could be a less altruistic attempt to “wash” money through the ethereum blockchain, obfuscating that it might have been illegitimately acquired.
But if past crypto history is any indicator, the likelihood of an innocent human error is not as outlandish as one might assume. Back in July 2014, one bitcoin user attached 30 bitcoins worth of transaction fees to a 38 bitcoin transaction due to an accidental error in typing, an error that despite enhancements in UX, is not altogether uncommon in the industry at large.
Ethereum image via Shutterstock
On February 11, Nasdaq, the world’s second-largest stock exchange, launched Bitcoin and Ethereum indices to present accurate prices of the two leading crypto assets.
Nasdaq’s Bitcoin Index a Likely Precursor to Crypto Investment Products
According to cryptocurrency analyst Alex Ziupsnys, the introduction of the crypto indices of Nasdaq could lead to the approval of a wide range of investment vehicles in the long-term.
The analyst said:
“NASDAQ to add a bitcoin index on its platform. They are reading the writing on the wall and don’t want to get left behind. There is no stopping this. Adoption happens gradually right in front of you, until you finally pause, look around, and bitcoin is the dominant asset.”
“This is big news. The launch of Nasdaq crypto indices could lead to regulatory approval for crypto-based derivatives in the market. And as a direct initial effect could mean more interest from institutional traders. The feeds are going live Feb 25th.”
Bitcoin ETF is a Prime Example
Breaking: What Crypto Winter? Nasdaq to Launch Bitcoin Futures Market https://t.co/EHeog8TPJ3
— CCN.com (@CryptoCoinsNews) November 27, 2018
In July 2018, the Bitcoin exchange-traded fund (ETF) proposal of Tyler and Cameron Winklevoss was officially rejected by the U.S. Securities and Exchange Commission (SEC).
At the time, among other issues, the SEC named the pricing of Bitcoin as its main concern. The commission claimed that the risk of price manipulation exists on cryptocurrency exchanges and as such, an ETF cannot be operated based on the price of digital assets on exchanges.
The official document released by the SEC explicitly stated that small trades can sway the price of Bitcoin on exchanges, and due to the presence of overseas markets, it is virtually impossible to audit all BTC transactions.
“This commenter expresses concerns regarding the Gemini Exchange Spot Price, noting that the nominal price of the Shares under the proposal is supposed to be tied to the market price of bitcoins at the Gemini Exchange, which is closely tied to the ETP proponents,” the document read.
Speaking to CNBC in November of last year, SEC Chairman Jay Clayton further emphasized that cryptocurrencies have to become free from the risk of manipulation and until the issue is addressed, an ETF will not be approved.
Nasdaq’s Bitcoin Liquid Index (BLX) and Ethereum Liquid Index (ELX) provide a real-time spot or reference rate for the price of BTC and ETH in USD derived from the most liquid parts of the global market.
The indices of Nasdaq are not concentrated in a small group of exchanges or over-the-counter (OTC) exchanges. Rather, the indices take into consideration all platforms processing cryptocurrency trades and find a reliable spot price.
BLX and ELX could serve as the base prices of Bitcoin and Ethereum for regulated investment vehicles in the long-term.
With the track record of Nasdaq in the financial sector and the emergence of a wide range of cryptocurrency indices, Bitcoin ETF operators could consider utilizing several indices including Nasdaq’s BLX and ELX to find an accurate representation of the value of leading digital assets.
Currently, firms like VanEck, Bitwise, and the Chicago Board Options Exchange (CBOE) are working with the SEC to release the first Bitcoin ETF in the U.S. market.
Liquidity is Key
As CCN reported earlier this week, Hwang Hyeon-cheol, a former Citi and Allianz executive, said that the cryptocurrency market still does not have a stable level of liquidity and market size for both institutional and retail investors.
Most investment vehicles that are pending approval in the U.S. are targeted at retail investors, and for their success, large liquidity and a reliable source of price is key.
Analysts expect Nasdaq’s indices to operate as the main source of crypto prices throughout the years to come, opening the door for various investment tools.
Featured Image from Shutterstock
The Dow and U.S. stock market were stuck in neutral on Tuesday despite a blowout earnings report from Walmart, a sign that traders were treading more cautiously ahead of a slew of macroeconomic indicators later in the week.
Dow Struggles for Direction
Wall Street’s benchmarks traded tepidly through the morning session, mirroring a relatively uneventful pre-market for Dow futures. The Dow Jones Industrial Average opened 34 points lower. It was last seen trading at 25,923.31, having gained 40 points, or 0.15%.
The broad S&P 500 Index nudged up 0.1% to 2,778.003, having erased an earlier drop. Six of 11 primary sectors reported gains, led by communication services and consumer stocks. On the opposite side of the spectrum, energy, financials, and industrials stocks provided much of the resistance.
The technology-focused Nasdaq Composite Index climbed 0.2% to 7,86.92.
A measure of implied volatility known as the CBOE VIX was last spotted making a modest move higher. VIX rose 1.7% to 15.17 on a scale of 1-100 where 20-25 represents the historical median range. The so-called “fear index” fell to more than four-month lows on Friday.
Get more insight from Hacked.com: Does this Chart Spell Doom for the S&P 500 Index?
Walmart’s Blowout Earnings Call
Shares of Walmart Stores Inc. (WMT) rose 3.7% on Tuesday after the retail giant posted stellar fourth-quarter earnings, underscoring its growing dominance in the e-commerce space.
The Bentonville, Arkansas-based company reported adjusted per-share earnings of $1.41, easily topping analysts’ estimate of $1.33. Revenues reached $133.79 billion compared with $138.65 billion expected.
E-commerce revenue surged 43% during the holiday quarter, prompting the retailer to maintain a strong sales outlook for fiscal 2020. CEO Doug McMillon said “a favorable economic environment” has helped Walmart take market share from its competitors.
Macro Data Flows
Appetite for risk was tepid on Tuesday as traders shifted their focus to the economic calendar. On Wednesday, the Federal Reserve will release the minutes of its most recent policy meeting, where officials unanimously agreed to hold off on raising interest rates. The official transcript may provide more rationale for the Fed’s increasingly dovish stance on monetary policy.
Markit is also teeing up a string of PMI releases covering Europe and the United States. Beginning on Wednesday, the research institute will report on manufacturing/services activity for Germany and the Eurozone. The U.S. reports are due the following day.
On Thursday, the Department of Commerce will issue its latest report on durable goods, a key proxy for manufacturing demand. During the same session, the National Association of Realtors (NAR) will report on existing home sales for January.
Separately on Thursday, the Labor Department will report on initial jobless claims for the week ended Jan. 17.
On Friday, four Fed speakers and European Central Bank President Mario Draghi will deliver speeches.
Featured image courtesy of Shutterstock. Chart via TradingView.
Ethereum prices up 21.6 percent in the last weekAfri Schoedon quits Ethereum after Polkadot, Serenity comparisonTransaction volumes picking up Compared to other coins in the top 10, Ethereum (ETH) is leading the bulls procession. Changing hands at around $150, we expect ETH bulls to gain ground ahead of Constantinople.Ethereum (ETH) Price AnalysisFundamentalsBlockchain-based projects are unique and special. A genuinely decentralized network will have a healthy mix of developers, investors, and speculators. All of them will contribute in one way or another. Everything else constant, the success or failure of a project depends on the number of dedicated developers. Afri Schoedon, the Ethereum core coder, was one of them. Due to online criticism, he announced his decision of stepping aside and in days ahead would “no longer respond on Gitter, Skype, Discord, Slack, Wire, Twitter and Reddit” directly to any member of public on technical questions or improvement requests regarding Ethereum.In a tweet, the quitting Ethereum servant said: “I did not quit social media, I quit Ethereum. I did not go dark, I just left the community. I am no longer coordinating hard-forks, building testnets, or contributing otherwise. I did not work on Polkadot, I never did, I worked on Ethereum. I did not hate Ethereum, I loved it.”Critics started pouring thanks in part to his honest comparison on Thursday last week between Polkadot, a multi-frame network that supports interoperability between wildly different blockchains and Serenity, a scaling solution proposed by Ethereum.Candlestick ArrangementAt the time of writing, ETH is up 21.6 percent in the last week. Despite Afri quitting, bulls are resilient, and prices are trending at new highs at the back of decent volumes. Although ETH is technically bearish unless of course prices breach the $170 ceiling, we shall retain a bullish outlook in days to come. It is easy to see why.Firstly, ETH is up above the $135 resistance level, and in a minor breakout pattern, these upswings did confirm bulls of Feb 8 which in turn validate price gains of mid-Dec 2018.Secondly, ETH found support at around the 78.6 percent Fibonacci retracement level, and as Fibonacci reversal rules dictate, ETH bulls will likely pump prices towards $170– a critical resistance level. Combined with fundamental reasons as Constantinople, we may see a situation where the march towards $170 will hasten.Technical IndicatorsThere is a remarkable shift of momentum and as aforementioned, confirming price swells of Feb 18 are high volumes–520k, exceeding those of Feb 8–519k. While bullish, market participation levels are lower than those of Jan 10–684k. Therefore, it is imperative that ETH bulls surge above $160 for a complete reversal of Jan 10 losses in a three-bar bull reversal pattern as prices bottom-up from $100 pits.
Bad news for Donald Trump as Britain and Germany won’t be joining the United States in its crusade to crush Huawei’s operations, but they do need guarantees from the Chinese firm. It seems both countries are not interested in getting caught in the dispute between the U.S. and China. Washington and Beijing are fighting for something much more than just economic supremacy.
The tensions have boiled over into a trade war that has continued to rage on till this day, with things set to get worse if the March 2 deadline for negotiations elapses and no resolution is reached by the two parties.
Huawei: Caught in the Middle
Huawei is a behemoth. It overtook Apple as the second-largest manufacturer of smartphones in the world in 2018 and dropped Ericsson in its tracks in 2012 as the world’s largest telecommunications-equipment manufacturer.
The China-based company is a major stakeholder in the global telecommunications industry, and axiomatically, is a perceived threat to any technological endeavor embarked on by the United States. So, it could only have been music to Trump’s ears when the company’s Chief Financial Officer Meng Wanzhou (who, coincidentally, is the daughter of the company’s CEO Ren Zhengfei) was arrested in December 2018, on charges reportedly related to a violation of sanctions imposed by the Trump administration on Iran.
The Department of Justice is pursuing criminal charges against Huawei. The allegations grew out of a civil suit in 2014 that accused the tech giant of stealing a robotic arm and other pieces of technology from a smartphone testing lab owned by T-Mobile. Huawei is also charged with conspiracy to steal trade secrets, obstruction of justice and attempted theft of trade secrets.
Weng was eventually indicted in Canada and has been held under house arrest at her Vancouver-based properties since then, amid efforts made by United States authorities to extradite her. Ms. Weng’s arrest sent the rumor mills churning. The timing of the arrest coincided with the beginning of the 90-day negotiation period over trade issues between the two countries, leading many to believe that President Trump masterminded the CFO’s capture as a form of leverage over President Xi.
National security advisor John Bolton has come out to deny those claims, stating that while he did know about the plan to detain Meng, Trump had no idea of it.
Huawei Restricted in America
Huawei’s planned 5G network rollout is also being restricted by Washington, over the impression that the tech giant’s ties with Beijing, could see them use these networks as tools of state espionage. Ren Zhengfei, Huawei’s founder and CEO, has hit back at the indictment, which he says is “politically motivated.”
Speaking with BBC on Monday, Ren said:
Firstly, I object to what the US has done. This kind of politically motivated act is not acceptable. The US likes to sanction others; whenever there’s an issue, they’ll use such combative methods. We object to this. But now that we’ve gone down this path, we’ll let the courts settle it.
Even though the U.S. is yet to furnish any proof of its claims, its aggressive criminal charges against the Chinese company is a way of marking its territory that Huawei’s hardware is off limits in the U.S. and its allies.
Other Countries Going Ahead
However, as it would appear, both Britain and Germany won’t be following in the steps of the United States, despite Trump’s best efforts to consolidate these countries against the tech giant. Both countries, due to their positions as economic and technological powerhouses, are crucial to Huawei’s 5G implementation efforts. While Britain is not taking sides with the U.S., some companies are being cautious with the Chinese firm. World’s second-largest mobile operator Vodafone, has put the brakes on the deployment of Huawei’s equipment in core networks until it gets security clearance from the West. Other operators like BT and France’s Orange have put plans in place to limit the Chinese firm’s equipment pending when the U.S clears its name.