Because Huawei has been included in the list of entities of the US Commerce Department. In mid-May, the company was unable to access its supply chain in the country officially. Resulting companies like Google, Intel, Qualcomm, UK-based ARM group (which use American technology in some of their chip projects) and other companies have ties to the Chinese phone manufacturer. This has led Huawei to accelerate the development of its Hongmeng operating system and to look for an app store for its upcoming phones.
On June 29, after the announcement of the US and China truce in the trade war, US President Donald Trump made an announcement.
“U.S. companies can sell their equipment to Huawei. We’re talking about equipment where there’s no great national security problem with it.” – Donald Trump
But the following day, White House economic adviser Lawrence Kudlow moderated Trump’s statement saying that Huawei remained on the entity list. The e-mail from the Department of Internal Trade found that the company continues to be” blacklisted “and US technology companies seeking a license to send supplies to Huawei should expect to be rejected, both Huawei and members of the US supply chain, which received a total of $11 billion Huawei a year last, have been completely confused.
However, it seems we could finally get clarification soon. A senior White House official said that sales to the US to Huawei could resume in just two weeks. Additionally, two chipmakers that are part of Huawei’s supply chain in the US told that they would soon apply for licenses. They made this comment after Trade Secretary Wilbur Ross said last week that such licenses will be issued in situations where there is no threat to national security. Today’s report says a customer response management company and a team that simulates cross-sectional radar for Huawei will submit a license application in the coming days. Kevin Wolf, the former Department of Commerce official, now a lawyer, says that since there’s no downside, companies are absolutely submitting applications, as required by the regulations.”
Huawei Ban Retaliation? China Draws Up List of ‘Unreliable’ Foreign Companies. Because the Chinese communist government can ask Huawei to collect intelligence information in its name. Huawei’s president, Liang Hua, says that if asked to spy, Huawei would say no. But US lawmakers have not won these comments and fear that the company’s telephones and network equipment contain backdoors that can send information to Beijing. Liang says he is willing to sign a “no spy” agreement with any country.
Huawei Wants The Trump Administration To End All Restrictions On its US Suppliers
Huawei was on track to achieve its long-term goal of becoming the largest smartphone maker in the world when the ban was announced. Last year it sent 206 million phones to third place behind Samsung (293.7 million) and Apple (212.1 million). But for the first quarter of this year, Huawei came in second place delivering 59 million phones, an increase of 50.3% on an annual basis. However, an internal document revealed that the company expects its international shipments to drop between 40% and 60% this year; Since we shipped 100 million phones from China last year, we could see a huge drop from 40 million to 60 million in Huawei’s shipments in 2019.
Although Huawei would like the restrictions to be completely eliminated so that suppliers do not have to apply for a license, this will not happen unless US legislators are satisfied that Huawei does not spy on consumers and US companies.
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