The rising tension of the extended US-China Trade War has dragged many companies off to their dispute. Huawei, China’s tech giant, is one of those unfortunate companies. After Trump declared an unfavorable policy, Huawei might suffer more.
Recently, Trump stated that he does not want to do business with Huawei. Accordingly, the reason is because the US perceives Huawei as a national security threat. The company, however, declines all the allegations.
Regardless of the truth, the company would most likely to suffer from the ban. The reason is because they will no longer be able to establish trade to get components from US companies and to use Google’s Android service.
As Trump’s statement is controversial even in the US, the US is giving Huawei another 90 days to think of solution. In the meantime, US government is also thinking of whether the trade between the Chinese giant and US companies should continue.
Currently, the best surfacing idea is to allow Huawei to establish trades with US companies under certain official approvals. Some US companies think that disallowing Huawei to purchase tech components from the US will give the company a chance to develop its own. Google thought the same as rumor says Huawei was to develop its own smartphone OS, Hongmeng.
Also read: Huawei: Hongmeng is Expected to Launch, Soon
On the other hand, Huawei is currently “unprepared” to face the uncertain outcomes. However, the founder of the company, Ren Zhengfei, is being optimistic about the issue.
“Whether the ‘entity list’ is extended or not, that will not have a substantial impact on Huawei’s business. We can do well without relying on American companies,” he said as reported by South China Morning Post.
The Ban
At first, Huawei received a ban from the US. The ban resulted in Huawei’s unavailability to trade with US companies such as Google, Intel, etc. Therefore, the company experienced a huge blow as they were unable to use various services such as Android, etc.
Following the recent G20 summit, US President Trump and China’s President Xi Jinping had some discussions. One of the topic was pertaining to Huawei. Afterwards, the US lifted the ban against the company temporarily for 90 days.
Accordingly, 90 days were a period for the US to think over of what they should do to companies such as Huawei. Numerous talks between Trump and US companies to discuss the matter were going. In addition, pros and cons were under debate.
Lately, the US extended the ban for another 90 day after series of uncertain policies. Trump, however, really wants to blacklist the company for good. The intention was made clear as he also blacklisted Huawei Australia recently.
Furthermore, the president has taken further steps ahead in this policy. He “invited” other countries, such as Canada and England, to join banning Huawei for good due to national security issues.
