Backfire: Export Controls Helped Huawei and Hurt U.S. Firms

This report analyzes how U.S. export controls on Huawei ultimately strengthened the Chinese tech giant instead of weakening it. Despite restrictions aimed at curbing national security risks and supply-chain access, Huawei accelerated domestic innovation, expanded market share in telecom infrastructure, and built its own operating system and chip capabilities—reducing reliance on U.S. firms. Meanwhile, American companies lost billions in sales and market position, underscoring the unintended strategic consequences of unilateral sanctions. The document argues that future technology restrictions must consider today’s global market dynamics and be coordinated with allies to avoid harming U.S. competitiveness.