The Wall Street Journal (WSJ) reported that Qualcomm is lobbying the U.S. government to sell chips for mobile communication using 5G technology to Huawei. The news is drawing keen attention as it came ahead of a high-level meeting on the 15th. To check the implementation of the first U.S.-China trade agreement.
Qualcomm claims that only foreign competitors are benefiting from the Donald Trump administration’s sanctions against China. The logic is that the ban on exports to Huawei will not prevent Huawei from purchasing essential parts.
Qualcomm sell logic: the government bans Huawei import, not export
Earlier in May last year, the U.S. government blacklisted Huawei and restricted transactions in the U.S.. In May of this year, the company imposed additional sanctions to restrict Huawei’s purchase of semiconductors. While extending the corresponding measures. The U.S. government judged that Huawei is illegally collecting important foreign information using its equipment in conjunction with the Chinese government.
Qualcomm pointed out that with the US ban, it will give 8 billion dollars worth of markets annually to Samsung and Taiwan’s MediaTec. As a result, Qualcomm has no choice but to suffer losses.
Qualcomm said that U.S. companies’ technology and leadership in the 5G sector will be threatened. The Trump administration’s policy is against national interests, and the company is urging the government to revise the policy. Huwei can procure parts from companies in other countries even if they do not purchase parts from U.S. companies.
Qualcomm also stressed that lifting the export ban would help us generate billions of dollars in sales. And also secure funds to develop new technologies.
Meanwhile, Qualcomm recently concluded a long-term patent contract after settling a patent fee dispute with Huawei. Qualcomm is known to receive $1.8 billion worth of settlement money under the name of unpaid patent fees and future fees.
