Yesterday, the Trump administration granted Huawei a temporary license that allows it to obtain parts and components from US companies for three months. Last Thursday, the company and 68 of its affiliates were included in the list of Entities of the Bureau of Industry and Security (BIS) of the Department of Commerce. Companies included in the list are prevented from purchasing US components and parts without a license issued by the US government.
The 90-day guarantee will allow the company to purchase supplies from US companies. Google followed its example and promised to send Android updates to the producer until August 19th.
Huawei is not exactly jumping up and down for short-term suspension. According to Reuters, the company said today that it was the victim of “bullying” in the United States. To be included in the list of entities after years of accusations by US legislators concerned about the fact that Huawei was spying, or could be forced to spy on US consumers and corporations on behalf of the Chinese communist government. Among fears that Huawei’s devices and network equipment contain a backdoor that can send information to Beijing, Huawei has been declared a threat to US national security.
Since 2012. Over the past year, global mobile operators have begun building their 5G networks. The Trump administration has constantly warned the allies not to use the company’s network equipment. This recommendation was addressed by Australia, Japan, and New Zealand.
Last week, Huawei president Liang Hua visited the United Kingdom; The country’s regulatory authorities are deciding whether to allow the use of the company’s 5G network equipment. Liang told the media that Huawei would sign a “non-spy” contract with any country.
Huawei is still not completely self-sufficient when it comes to chips according to experts
The battle between the US and Huawei intensified earlier this year when the United States Department of Justice just slapped the company with a 13-count indictment.
Huawei, two affiliates (Huawei Device USA and Skycom Tech) and Chief Financial Officer Meng Wanzhou have been accused of committing several bank-related crimes. It is also declared by the US that the company has tried to cover the business it has done with Iran, in violation of the international economic sanctions imposed on the country.
At the same time, they also accused the manufacturer of stealing trade secrets from T-Mobile. Huawei had already been convicted in a civil court for stealing parts of the operator’s Tappy robot used to test smartphones and was ordered to pay T-Mobile for almost $5 million.
Last year, Huawei sent over 200 million phones and was the second smartphone manufacturer in the world in the first quarter of this year. The company was hoping to take Samsung’s first place next year, but of course, this is now in doubt depending on what happens after the three-month suspension.
And even if Huawei relies on its ability to replace hardware, software, and components. Those who may not have access in 90 days still need to replace $11 billion in shares purchased from US companies.
Chip experts say that Huawei is still a few years from being totally self-sufficient in this area. Last year, like Qualcomm, Intel and Micron Technologies. Yes, Huawei designs its own chips but uses software from American companies to do so.
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