Huawei to fight it alone as US-China trade war intensifies
Network provider is under pressure as companies worldwide shun its products in response to Trump’s ban
Chinese technology giant Huawei says it can fight its own battles as the US-China trade tensions continue to escalate.
The company is facing continued pressure as companies distance themselves from the world’s largest networking equipment manufacturer in response to the US government ban.
“We’re not expecting them [the Chinese government] to resolve this for us,” Glenn Schloss, vice president of corporate communications for Huawei, told Business Day in Hong Kong on Friday.
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Google is the first company to have suspended business with Huawei that requires the transfer of hardware and software products except those covered by open-source licences.
This comes after the US government announced the addition of Huawei Technologies and its affiliates to its “Entity List”, a move aiming to ban Huawei from buying parts and components from US companies without government-approved licences.
Google said they “are complying with the order and reviewing the implications”.
China has slammed the decision, though Huawei has maintained its independence of the Chinese government since allegations began in 2018.
Huawei has said it will continue to provide security updates and after-sales services to all existing Huawei and Honor products, covering those that have been sold and that are still in stock globally.
Without full regulations in place yet from US authorities, Schloss said it remains to be seen what the practical implications of this move will be on their supply chain and the industry.
In addition to Google, chipmakers Intel, Qualcomm, Broadcom and others have reportedly stopped supplying Huawei until further notice, a move that could leave it without vital components for its products.
Huawei said in a statement the decision by the US is in no-one’s interest. It will do significant economic harm to the American companies with which Huawei does business and affect tens of thousands of American jobs, it said.
On the local front, it remains to be seen if this move will affect relationships with carriers. At Mobile World Congress in March, MTN announced its intention to strengthen ties with the Chinese company.
Last week, Vodacom’s parent company, Vodafone, said it will switch on its 5G service in July using Huawei equipment.