In the last 10 centuries, China dominated at least 7 economically. India had effervescence. England experienced same. Then America took over. As the new order evolves, the messages of Schumpeter and Adam Smith will become evident. Schumpeter’s “creative destruction” and Smith’s “comparative advantages” will be tested. China is creatively outcompeting all, and can do everything. Largely, its destiny is assured: back to the top. But America will give its best – expect economic warfare ahead.

Google Restricts Huawei’s Use of Android; Huawei Responds with Statement

This is a big one for all the noise of one world and one global family – it seems it works when some are winning and others are asking for aids. Provided that order stays that way, the winners will be happy. But when the others begin to rise, then tension will rise. So, it was shocking that Google, obeying order from above, is restricting Android from Huawei. BBC explains it thus as “Google launches the next version of Android later this year, it may not be available on Huawei devices.”  Recently, Huawei was added in the dreaded “entity list” which will restrict its capacity to import technologies from U.S.

Google has barred the world’s second biggest smartphone maker, Huawei, from some updates to the Android operating system, dealing a blow to the Chinese company.

New designs of Huawei smartphones are set to lose access to some Google apps.

The move comes after the Trump administration added Huawei to a list of companies that American firms cannot trade with unless they have a licence.

Google said it was “complying with the order and reviewing the implications”.

Huawei said it would continue to provide security updates and after sales services to all existing Huawei and Honor smartphone and tablet products covering those have been sold or still in stock globally.

“We will continue to build a safe and sustainable software ecosystem, in order to provide the best experience for all users globally,” it added

Of course China is not innocent itself, lacking to understand that global markets cannot treat it the way it was treated 30 years ago. It has to make concessions for other countries to also rise. Its stubbornness in refusing to recalibrate its economic architecture (by reducing state capitalism) will affect nations like Nigeria, Ethiopia, and Rwanda from rising. While U.S. may be brash in its tactics, China needs to understand it is a big boy on the global table and needs to make changes for the small guys to have seats.

For Huawei, maybe there is a plan B after all the big talks. You have an opportunity to show the world. You said you have planned for this ban; the opportunity is here to show your customers that nothing has changed.

In the short term, I expect Huawei to lose market share in the consumer mobile device market. Huawei response to the ban below:

“Huawei has made substantial contributions to the development and growth of Android around the world. As one of Android’s key global partners, we have worked closely with their open-source platform to develop an ecosystem that has benefitted both users and the industry.

Huawei will continue to provide security updates and after-sales services to all existing Huawei and Honor smartphone and tablet products, covering those that have been sold and that are still in stock globally.

We will continue to build a safe and sustainable software ecosystem, in order to provide the best experience for all users globally.”

I just listened to Jumia Nigeria CEO (Juliet Anammah) explaining the Jumia side of the Citron “fraud” allegations against the African ecommerce pioneer. She put a show there on CNBC Africa. As I wrote, when the news broke, “The Americans are wrong – Jumia is not a fraud”, I saw no basis for Jumia to think adding those merchants or users will change its trajectory.

Yet, across all events I have attended, that question has been coming up, and it is getting really nauseating that Jumia has failed to put a formal response. This TV response is not effective – not many people have time to watch a 26-minute show for answers which are all over the place. You cannot rely on the Citi Research reaction since Citi did come to the same conclusion – Jumia respond and explain the two areas of concerns.

Jumia – put a formal response. This allegation can break you in America. Look at the stock – it is dropping. Largely, you had a great quarter but this lack of press management could be eroding trusts in your potential investors. This is America where data and news move markets.

Citron Research Calls Jumia a “Fraud”, Stock Drops [Download the Report]

LinkedIn Summary

Jumia is a category-king company but its response to the Citron allegation gets EDEFE, as scores, from me: E on speed, D on stubbornness, E on substance, F on readiness, and E on value preservation. The CNBC interview from Jumia Nigeria CEO is not enough. They need to put a formal response. Like I wrote the day the news broke – “The Americans are wrong – Jumia is not a fraud”. But that message must come from Jumia! This is America where data and news move markets.