How Huawei Might Handle the Latest US Sanctions

How Huawei Might Handle the Latest US Sanctions

5 years ago
Anonymous $9jpehmcKty

https://www.wired.com/story/how-huawei-might-handle-latest-us-sanctions/

Things were looking up for Huawei last month. Officials in the UK, Germany, and the European Union signaled they would defy US pleas to ban the Chinese telecommunications giant from building 5G wireless networks within their borders. Huawei also reported a 39 percent increase in first-quarter revenue. Then, on Thursday, the US Department of Commerce added Huawei to a list of companies considered a threat to US national security, meaning it would need permission to acquire US technology. Soon chipmakers like Intel and Broadcom reportedly stopped selling to Huawei, and Google pulled the company's licenses for key mobile applications like Gmail and the Google Play app store.

When the Trump administration barred US companies from selling to Chinese telecom company ZTE last year, ZTE said it would halt operations. The Trump administration later backed down, but ZTE's near-death experience demonstrates how reliant telecom companies are on US technologies. Huawei isn't as vulnerable as ZTE was, analysts say. Huawei makes some of its own chips, has bigger stockpiles of components, and isn’t as reliant on its handset business as ZTE.

How Huawei Might Handle the Latest US Sanctions

May 21, 2019, 11:18pm UTC
https://www.wired.com/story/how-huawei-might-handle-latest-us-sanctions/ > Things were looking up for Huawei last month. Officials in the UK, Germany, and the European Union signaled they would defy US pleas to ban the Chinese telecommunications giant from building 5G wireless networks within their borders. Huawei also reported a 39 percent increase in first-quarter revenue. Then, on Thursday, the US Department of Commerce added Huawei to a list of companies considered a threat to US national security, meaning it would need permission to acquire US technology. Soon chipmakers like Intel and Broadcom reportedly stopped selling to Huawei, and Google pulled the company's licenses for key mobile applications like Gmail and the Google Play app store. > When the Trump administration barred US companies from selling to Chinese telecom company ZTE last year, ZTE said it would halt operations. The Trump administration later backed down, but ZTE's near-death experience demonstrates how reliant telecom companies are on US technologies. Huawei isn't as vulnerable as ZTE was, analysts say. Huawei makes some of its own chips, has bigger stockpiles of components, and isn’t as reliant on its handset business as ZTE.