Published: Sat, May 18, 2019

Huawei says USA ban will 'significantly harm' American jobs, companies

Huawei says USA ban will 'significantly harm' American jobs, companies

On Wednesday, President Donald Trump declared a "national emergency" empowering him to blacklist companies seen as "an unacceptable risk to the national security of the United States" - a move clearly aimed at Huawei.

In recent months, the USA government has taken a number of steps against the firm, including getting Canadian authorities in December to arrest Huawei CFO Meng Wanzhou over allegations of defrauding several banks by concealing payments from Iran in violation of US sanctions.

In addition to hurting Huawei and other big Chinese firms, this action will also harm big US technology firms like Qualcomm and Broadcom that do business with companies in that country.

This will make it hard for Huawei to sell some products because of its reliance on US-made parts, and could potentially put its use of the Google Play store and Google apps on Android devices in jeopardy.

In a paper last month, they said the company is owned by a shadowy trade union, noting that in China such unions are invariably government-controlled. Analysts believe this strategic reserve of electronic parts could sustain Huawei for another year without new purchases from the U.S. "By then, they are already dead". Huawei is the second-biggest smartphone vendor in the world, according to IDC, and it sells a large amount of network equipment to telecom providers and other companies.

Still, Dinha acknowledges that lawmakers and national security policy experts have valid concerns about Huawei's relationship with China, even though the company says it can't be compelled to spy for the Chinese government.

Trump's order addresses USA government concerns that equipment from Chinese suppliers could pose an espionage threat to US internet and telecommunications infrastructure. Since American companies dominate semiconductors, that could smother Huawei's production of everything from 5G base stations to mobile phones. "But server and network, it's a different story", the executive said.

A security robot with Huawei 5G technology is displayed at an exhibition during the World Intelligence Congress in Tianjin, China on May 16, 2019.


The Chinese commerce ministry said Thursday it had no information on a US plan to come to Beijing to continue talks, after US Treasury Secretary Steven Mnuchin said he would likely visit China in the near future.

We are breathlessly informed that 26,000 jobs, £470m in taxes, the salaries of 16,900 nurses, the smile on Mary Poppins' face and the odds of snow on Christmas Day all emanate from Huawei in Britain, directly and indirectly.

South Korea's Samsung dropped 2.4%, SK Hynix fell 3.5%, while China's Luxshare Precision Industry fell as much as 6.1%.

The Trump administration's decision to sanction and potentially cripple Chinese telecoms giant Huawei Technologies Co Ltd garnered a sharp rebuke on Thursday from Beijing, which warned that the move could damage trade talks.

The ZTE case led to some "benefits" and "external pressures have developed into internal drivers" in China, said Wan Gang, vice chairman of China's parliamentary advisory body. -China trade war stalled last week, the United States ramped up the pressure by raising tariffs on a list of $200 billion worth of Chinese imports to 25% from 10%. Meng faces extradition to the United States on charges that she conspired to defraud global banks about Huawei's relationship with a company operating in Iran.

The Trump administration's rhetoric towards China had cooled in recent days after another round of tariffs between the world's top two economies and a selloff on global stock markets.

Donald Trump has signed an executive order barring U.S. companies from using telecommunications equipment made by firms posing a national security risk.

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