Technology

War in full swing between Huawei and Trump administration

Faced with a veritable commercial crusade on the part of the American authorities, Huawei defends itself. The Chinese giant recently denounced Washington’s latest initiative to restrict exports of semiconductors as another attempt to stem foreign competition. According to the Shenzhen company, this new tightening of export rules should ultimately undermine the confidence of international companies in American supply chains, which will ultimately harm the United States’ own interests.

Such is at least the opinion of the interim president of Huawei, Guo Ping, who spoke earlier this week on the sidelines of the annual global summit of the company in Shenzhen, China. It must be said that the past year has been trying for Huawei, added in May 2019 on the “black list” of foreign companies considered dangerous for the security of the United States.

This is an important mention which means that American companies cannot transfer goods to companies on this list, unless the latter benefit from an express license granted by Washington.

Too early to assess the damage

Adding Huawei to the United States’ “black list” led the Chinese giant to increase its research and development investments by 30% and to
 invest in reengineering its products, said Guo Ping. It has also led to the remanufacturing of more than 1,800 cards and the rewriting of some 16 million lines of its software codes, while the company is now looking for alternative sources for many of its materials.

However, the president of Huawei believes that it is still too early to assess the consequences of the latest restrictions on the export of chips on its product line, and in particular smartphones. The fact remains that by virtue of this decision, the founders who use American technology and software to produce semiconductors for Huawei and its subsidiaries will no longer be able to do so without the prior authorization of the American government.

This decision should notably affect Taiwan Semiconductor
Manufacturing Company (TSMC), which supplies most of the chips
for Huawei smartphones. Last week, the chipmaker has
 unveiled its plan to build and operate a
advanced semiconductors in Arizona, United States, the
construction is expected to start next year and production in
2024.

Huawei raises the tone

Huawei however defended itself at the beginning of the week, declaring itself “categorically opposed” to this new rule targeting it specifically. Despite the lack of access to “industrial and technological elements
Huawei management said it had complied with all
regulations of the US government while fulfilling its
contractual obligations to customers and suppliers.

“Nevertheless, in his relentless pursuit to tighten his grip on
our business the US government decided to sue and
completely ignore the concerns of many companies and
industry associations, “said the Chinese manufacturer of
smartphones. “This decision was arbitrary and pernicious, and threatens
to undermine the entire industry worldwide. This new rule
will impact expansion, maintenance and operation
continuous networks worth hundreds of billions of dollars
that we’ve deployed in over 170 countries. “

And drive the point home. “The United States relies on its own
technological advantages to crush companies located outside
their borders. This will only undermine the confidence that
international companies place in technology and chains
supply. Ultimately, this will bring
prejudice to American interests. “Still, Huawei’s reaction is justified in the figures. Remember that the Chinese giant was seriously affected by the American decision, losing nothing less than $ 12 billion in revenue last year.

Source: .com

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