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risks to global supply chain, 1 December 2018 - the arrest of Huawei's…
risks to global supply chain
political risk - suspition of surveillance
US authorities suspects Huawei of violating US sanctions on Iran
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
Huawei is now the 2nd biggest smartphone player in the world surpassed only by Smasung
US-China tech wars
Huawei was under scrutiny since 2011 for its allegedly close ties to CHinese government
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
2012 - HIC accused Huawei and ZTE (chinese rival) of stealing intellectual property form American companies
April 2018 - Federal Communication Commission issues a new rule that blocks federally subsidized telecom carriesr like AT&T
Huawei and ZET phones banned from retail stores in US military bases
FBI, CIA and NSA make a case against Huawei ZTE
economic risk
March 11 2020— WHO Declares COVID-19 a Pandemic
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.
physical risk
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
Difficulties with operating whole supply chain
Shortages is supply chain
Silicon manufacturing units damaged
Global - shortfall in the supply of silicon wafer
( 60% of the global silicon wafer supply - is from Japan)
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
Cars will not be produced
General Motors suspending production in the US
Toyota Motors curbing production in North America
Damaged rail and road network
Companies head to Singapore, Malysia, Indonesia for supplies
political risk
Political risk : riots
China opens oil rig in disputed region of South China sea
1 December 2018 - the arrest of Huawei's CFO Meng Wanzhou
Why do companies rely on one supplier? Cuts costs; Greater access to supplies,