Huawei and the US have been tussling a trade war that saw the Chinese phone maker and telecoms provider feature in America’s Entity List. The latest nail on the coffin is legislation that will see foreign chip makers stop making chips based on Huawei designs. At the same time, using the U.S. design tools and hardware will have to be furnished by a license from America’s Department of Commerce. Going by past trends, it is likely such a license will be granted.
The amendments have since been opposed by Huawei. The corporation says that ever since it was added in the List in May 2019, it has complied with all US rules and regulations. Besides lacking assess to key industrial and technological elements, it has continued to fulfill its contractual obligations to customers and suppliers.
“Nevertheless, in its relentless pursuit to tighten its stranglehold on our company, the US government has decided to proceed and completely ignore the concerns of many companies and industry associations,” says Huawei.
Furthermore, Huawei says that decisions are simply undermining the entire industry. To this end, the new regulation will affect the expansion, maintenance, and continuous operation of networks worth hundreds of billions of dollars.
“It will also impact communications services for the more than 3 billion people who use Huawei products and services worldwide,” adds Huawei.
Huawei adds that the US is attacking it for no good reason. In fact, Huawei asserts that this attack goes against America’s claim that it is motivated by network security.
Of course, the decision will not just affect Huawei since it is likely it’ll have a felt impact on many global industries.
“In the long run, this will damage the trust and collaboration within the global semiconductor industry which many industries depend on, increasing conflict and loss within these industries,” reports Huawei.
Huawei reveals that the US is taking advantage of its own technological strengths to undermine and crush companies outside its borders.
The outcome? Well, Huawei says this will undermine global companies have for US technologies and supply chains. Will this harm US interest? Huawei says it is very possible.
“We expect that our business will inevitably be affected. We will try all we can to seek a solution. We hope that our customers and suppliers will continue to stand with us and minimize the impact of this discriminatory rule,” concludes Huawei.
