That move also hurts US suppliers and speeds up Beijing’s technological autonomy efforts, according to the AP.
The White House yesterday issued an ordinance banning the use of equipment from companies “causing unacceptable risks to US national security or the security and safety of Americans” – which seems to be targeted. Huawei. Later, they had a stronger move that made Huawei difficult to use important components and technology from the US. These documents came into effect on Thursday and required the US government to apply to all US purchases of microchips, software and other devices globally by Huawei and 68 businesses. under progress. Huawei said that these transactions amounted to 11 billion dollars of goods last year.
Trade Minister Wilbur Ross said on Thursday in an interview with Bloomberg TV that the moves “are not really part of trade negotiations” but added they could be reversed if Huawei no longer exists. is considered a “significant danger” to the US national security.
The US government has long claimed that devices from suppliers including Huawei pose a spy threat. But US officials did not give evidence of any Huawei device playing such a role.
“Broken” chain of US-China technology connections
About one-third of Huawei’s suppliers come from the US, including chip makers Broadcom, Qualcomm and Intel. Ironically, many computer chips, memory and other components they get from US companies are manufactured in China, said Roger Entner, founder of telecommunications research firm Recon Analytics. .
Huawei’s flagship smartphone, Mate 20 Pro, includes chips manufactured by Skyworks Solutions Inc. and a wireless receiver manufactured by Integration Device Technologies, both US companies.
Huawei is a big man in the global technology telecommunications village. (Source: AP)
No company responded immediately asking for a comment. A Qualcomm spokesman said the company had no comment.
Kevin Wolf, who served as assistant secretary of commerce for government under President Barack Obama, described the impact of US sanctions as “huge”.
He said they would have “a ripple effect across the entire global telecommunications network.” If Huawei “can’t get software, parts or software updates to keep it running, then those systems will stop working,” Wolf said.
Huawei issued a statement on Thursday that the action “was not for the benefit of anyone”.
“It will cause significant economic harm to US companies that Huawei trades, affecting tens of thousands of US jobs and disrupt existing cooperation and trust on the global supply chain.” , the company said.
Huawei has been the largest global network equipment provider and Entner said it is ready to surpass Samsung to become the No. 1 smart phone manufacturer. He said Huawei now has the ability to move toward producing all. domestic components. China had a policy of seeking technological autonomy in 2025 and Entner said Huawei has its own mobile processor and chip.
Restrictions will also prohibit Google from licensing the value-added components and services of the Android operating system that Google provides for free to use on Huawei and other smartphones.
Entner said Huawei might be forced to ship its smartphone outside China with a shortened version of Android used inside China. This package lacks Google’s mapping software and App Store – where users buy and download apps, meaning Google may lose revenue.
Google officials did not immediately respond to a request for comment.
Huawei’s leading force
While export control measures may keep US technologies away from Huawei, a separate executive decree could effectively prohibit the import of Huawei products into the United States.
Huawei vehemently denies involvement in intelligence operations and says that blocking business in the United States will hinder the introduction of next-generation 5G communication technology. Huawei is the world leader in 5G and Entner says Huawei’s 5G devices use local manufacturing technology, meaning they don’t need US components.
European countries did not follow US recommendations to ban the company’s equipment from their 5G network. The leaders of Germany and the Netherlands made clear on Thursday that they had no plans to change their stance against newly announced US measures.
All major US wireless service providers and internet providers have used Chinese-made equipment many years ago, according to a 2012 report by the House Intelligence Committee.
Last year, Mr. Trump signed a bill banning the US government and contractors from using equipment from Chinese suppliers.
Huawei’s smartphone is virtually absent in the United States, and last week, the FCC Federal Communications Commission rejected a bid from a Chinese phone company to provide domestic service in the United States.
Huawei said it provides 45 of the world’s top 50 telecommunications companies. But only about 2% of telecommunications equipment bought by North American carriers in 2017 is manufactured by Huawei.
The domestic economic impact of the US will be limited mainly to small operators where Huawei devices have attracted them because of lower costs. That may make it more difficult to expand fast internet access in rural areas.