US lawmakers, both in the House and in the Senate, are worried that President Donald Trump will lift restrictions on Chinese manufacturer Huawei. According to reports, Invoices were presented today in both houses of Congress that will prevent Huawei from being removed from the Department of Commerce Entity List without Senate and House approval. Furthermore, the bill would allow Congress to lift the exemptions that allow US companies to send supplies to Huawei.
“American companies shouldn’t be in the business of selling our enemies the tools they’ll use to spy on Americans.” – Republican senator Tom Cotton
The addition of Huawei to the list in mid-May prevents him from accessing supply chain from the US. And forced the company to accelerate the development of its Hongmeng operating system that will replace Google’s Android. Google has ties to Huawei, which prevents it from obtaining the license for the Google’ services of Android that includes updates and the Google Play Store. Even chip companies like Qualcomm, Intel, and ARM Holdings have stopped doing business with Huawei.
Confusion Still Reigns Among Huawei’s US Suppliers
Huawei was initially included in the list of entities for security reasons; The company is considered a threat to US national security because, according to Chinese communist law, it could be asked to gather information for the benefit of Beijing. Lawmakers in the US have always feared that Huawei’s devices and network equipment contain backdoors that send information to the Chinese government. Huawei has repeatedly denied this and President Liang Hua declares that he will sign a no-spy agreement with any country. But President Trump also had another reason for placing Huawei on the list of entities. In May, Trump said that Huawei’s position on the list could be used as a bargaining chip to obtain more favorable terms from China for any trade agreement between the two nations.
“So, it’s possible that Huawei even would be included in some kind of a trade deal, if we made a deal, I could imagine Huawei being possibly included in some form, some part of a trade deal.” – President Trump
On June 29, when Trump announced a truce in the trade war with China, he said that ” U.S. companies can sell their equipment to Huawei. We’re talking about equipment where there’s no great national security problem with it.” This statement led to the confusion that exists to date. A few days ago, a senior White House consultant said US suppliers, who received $ 11 billion from Huawei last year, could resume shipping to Huawei in a couple of weeks, if that happens, we’ll have to wait and see.
So why is the Senate and the House trying to take control of Huawei’s position away from the president? Consider that last year, the Chinese telephone and network equipment manufacturer ZTE was subject to a similar export ban. Also considered a threat to national security, ZTE failed to comply with the sanctions imposed by the Commerce Department after selling goods and services to Iran and North Korea in violation of US economic sanctions. President Trump was involved and sent a tweet that showed unusual concern for workers in China. While many lawmakers opposed it, Trump ordered the Commerce Department to reach an agreement with the company. There is support on both sides of the corridor to prevent this from happening again with Huawei.
The US has warned the allies not to use Huawei’s network equipment in their 5G networks and the US government presumably blocked Verizon and AT & T from carrying the Huawei Mate 10 Pro in 2018. Huawei is the largest manufacturer of network equipment in the world. On the way to becoming the world’s largest smartphone maker next year, when the ban was announced. In 2018, Huawei delivered 206 million phones and seized another 59 million during the first quarter of this year. But without access to the Google Play version of Android services, the company itself has hinted that shipments could drop between 140 and 160 million by 2019.
However, an analyst named Guo Minghao estimates that if Huawei receives a license again to use the Android version of Google Play Services, it could send up to 260 million units. If the company is forced to use its Hongmeng operating system, it will see that the company will deliver 230 million phones in 2019. Minghao says that Huawei’s phone shipments to China have improved, and this should offset the decline. But Huawei also admits that beating Samsung and gaining the role of the world’s leading smartphone manufacturer will take longer than originally expected due to the ban.
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- Despite the Boycott, One U.S. Chip Maker has Continued Shipping A Few Components to Huawei
- US Companies Find A Way To Avoid Huawei Ban, The Trump Administration Is Divided On What To Do
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