risks to global supply chain

political risk - suspition of surveillance

economic risk

physical risk

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US authorities suspects Huawei of violating US sanctions on Iran

1 December 2018 - the arrest of Huawei's CFO Meng Wanzhou

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it was first seen as a part of Trump's trade wars but in fact it is the latest entry to the US-China tech wars

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Huawei is now the 2nd biggest smartphone player in the world surpassed only by Smasung

US-China tech wars

March 11 2020— WHO Declares COVID-19 a Pandemic

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Huawei was under scrutiny since 2011 for its allegedly close ties to CHinese government

2011 - earthquake and tsunami, Tohoku, Japan

Inerrupted supply of electricity

Tokyo Electric Power Company (Tepco) - isn't able to help after the previous damage by Fukushima Daiichi nuclear plant

Shortages is supply chain

Silicon manufacturing units damaged

Global - shortfall in the supply of silicon wafer

Parts scarcity for carmakers and electronics manufacturers

Shut down of production in factories

If problem is not resolved compaines will run out of inventories and supplies

General Motors suspending production in the US

Toyota Motors curbing production in North America

US intelligence officials think that huawei's hardwere could provide a back door for China's massive state surveillence apparatus, however Huawei denies these allegations

Damaged rail and road network

Difficulties with operating whole supply chain

( 60% of the global silicon wafer supply - is from Japan)

2012 - HIC accused Huawei and ZTE (chinese rival) of stealing intellectual property form American companies

Cars will not be produced

April 2018 - Federal Communication Commission issues a new rule that blocks federally subsidized telecom carriesr like AT&T

Why do companies rely on one supplier? Cuts costs; Greater access to supplies,

Huawei and ZET phones banned from retail stores in US military bases

FBI, CIA and NSA make a case against Huawei ZTE

Companies head to Singapore, Malysia, Indonesia for supplies

For many poorly prepared countries, surge capacity likely will be delivered by foreign aid providers. This is a tenable strategy during localized outbreaks, but global surge capacity has limits that likely will be reached during a full-scale global pandemic as higher-capacity states focus on their own populations.

Regions like Central and West Africa lag behind the rest of the globe in pandemic preparedness.

political risk

Political risk : riots

China opens oil rig in disputed region of South China sea

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