Sunday, 15 September, 2019

Huawei: 90 days temporary license means nothing to us

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Cecil Davis | 22 May, 2019, 11:46

Following the announcement by the United States government including Huawei in its "entity list", several US-based manufacturers have begun to comply with the "ban".

Huawei's ambitions to leapfrog Samsung as the largest maker of smartphones were dealt a devastating blow at the weekend when it was barred from Google's Android operating system.

But now, the U.S. Department of Commerce has chosen to grant Huawei a license of 90 days so it could help existing customers.

The 90-day grace period before Huawei is officially blacklisted from doing business with U.S. companies does not have much impact on the company, Ren claimed, adding: "We are ready". It will also give telcos dependent on Huawei products time to potentially find alternative solutions.

"In short, this licence will allow operations to continue for existing Huawei mobile phone users and rural broadband networks".

"Basically, this is a very clear attempt to cripple Huawei", he told Al Jazeera from Beijing, warning, however, of potential "disastrous consequences" for the profits of some United States tech giants. Trump administration officials have argued that Huawei's continued access to US technology poses a national security risk, given concerns about intellectual property theft and cybersecurity that have overshadowed ongoing trade negotiations between the USA and China. Bigger publications like The Verge haven't been able to get an answer either, and the technology website is also reporting today that Microsoft has quietly removed the $1,499 Huawei Matebook X Pro from the Microsoft Store during the weekend.

Over the past year, the USA government has increased its criticism against Huawei and other Chinese companies calling them untrustworthy and accusing them of espionage for the Chinese government. He said Huawei has "supply backups" if it can not buy American parts.

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Five mobile phone shops at Far East Plaza and Sim Lim Square which TODAY visited yesterday said that they have stopped buying Huawei phones from customers for resale since Monday.

The U.S. claims Huawei is a cybersecurity risk and has targeted it against the backdrop of a wider battle with China over economic and technological pre-eminence that has included tariffs on billions worth of trade and limits on business.

USA intelligence believes Huawei is backed by the Chinese military and that its equipment could provide Beijing's intelligence services with a backdoor into the communications networks of rival countries.

ZTE nearly collapsed after the U.S. Commerce Department banned it for three months in 2018 from buying American technology. -China trade war that's being used as leverage. "We're a football in between this trade war", he told the BBC. He said some low-end business might be affected.

Apple Inc., Huawei's main American rival in smartphones, makes a prominent potential target for Beijing. Past year the Chinese company exported an estimated 100 million handsets. Additionally a UK Huawei exec told the beeb he reckons Huawei is just collateral damage in the broader trade war between the USA and China, which is hard to argue with.

Huawei smartphone shipments rose 50 percent over a year earlier in the first three months of 2019 to 59.1 million, while the global industry's total fell 6.6%, according to IDC.