USA ban has 'no effect' on Huawei's aviation business

Ann Santiago
June 7, 2019

Huawei is allowed to buy us goods until August 19 to maintain existing telecoms networks and provide software updates to its smartphones. But cybersecurity experts worry the ban will hurt US tech companies more than it hurts the Chinese telecom giant - and will diminish USA influence over the security of new technologies.

The Commerce Department imposed that ban last month as part of a broad government effort to punish Huawei over concerns it's helping the Chinese government spy on USA companies.

Alex Stamos, a former Facebook chief security officer, warned that the ban "seems much more likely to embolden the [Chinese government] than deter the misuse of its technology industry".

The U.S. government has been trying, albeit unsuccessfully, to convince their European counterparts to give up business with Huawei.

SYNOPSYS INC: The electronic products and software maker said on May 23 the company was restricting trade with Huawei and this will impact its revenue. This wasn't the first time Huawei has been targeted by the USA government. Much of today's traffic goes through those cables and it's a huge business in which U.S. firm SubCom dominated the market, together with the European Alcatel-Lucent and Japan's NEC Corp.

The ban of sales of Huawei equipment to United States companies and a similar measure keeping U.S. firms from selling technology to Huawei without permission will cause a direct impact on sales, at the very least for Huawei's devices. As the trade war continues to heat up, with retaliatory tariffs enacted by both sides, the USA and China have ensured that the world is staring down an economic slowdown.

In a recent interview with Bloomberg on May 24, Huawei's founder Ren Zhengfei said that the firm will find its own way to solve its supply chain problems. The move comes as a reprisal to President Trump's decision to punish China with increased duties on Chinese goods worth $200 billion, earlier this month. "But we hope the United States can change their way".

Huawei has repeatedly denied any connection to China's government or that it poses any security threat.

Since then, Google Inc. has restricted Huawei's access to its Android operating system and has limited access to its apps such as Gmail and the Google Play store in new handsets made by Huawei.

Huawei did say that it is working with Google in order to amend the issue, even though we don't see how will they do that considering that the ban applies to USA companies, and Google is a US-based company.

To deal with the blow, Huawei is slowing down production and reevaluating the situation, according to a report coming in from the South China Morning Post.

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