US Delays Huawei Ban for 90 Days

Marco Green
May 22, 2019

ZTE nearly collapsed after the U.S. Commerce Department banned it for three months in 2018 from buying American technology.

He also touched on European Union concerns about trade wars. After an initial backlash that saw shares of Google and other technology companies drop on Wall Street, the White House has temporarily delayed the ban, giving the company 90 days to allow it to maintain its network and support existing customers. And while the current political climate in the USA may have forced Huawei's hand, the real shock would have been if Huawei didn't have any potential workarounds already in mind.

The reprieve is meant to give telecommunications operators that rely on Huawei equipment time to make alternative arrangements, US Secretary of Commerce Wilbur Ross said in a statement.

The TGL, effective Monday, will allow Huawei users to continue receiving software updates on their phones, while the company can continue to purchase parts from USA suppliers.

Recently, the USA government put Huawei on a blacklist, which meant that all American firm had to cease any cooperation with the Chinese company.

Last night, the company's CFO, Ren Zhengfei, said that the United States politicians underestimate Huawei's strength.

"The goal seems to be to prevent internet, computer and cell phone systems from crashing", lawyer Kevin Wolf, a former Commerce Department official, told Reuters news agency. "This is not a capitulation".

"If the ban continues, Huawei will be damaged for sure, particularly in smartphones but also in the datacenter and networking markets", said Patrick Moorhead of Moor Insights & Strategy.

However, if a new report from Bloomberg is any indication, Huawei could be much closer to having its own independent app store than most people may have realised.

At the same time, the US Commerce Department announced an effective ban on US companies selling or transferring technology to Huawei. "It shows how pervasive Huawei goods and technology are around the globe and if the US imposes restrictions, that has impacts". Huawei has pleaded not guilty.

US President Donald Trump's administration backtracked on immediately banning Huawei, allowing it a three-month reprieve after technology stocks tanked Monday on news Washington would forbid American entities from doing business with the Chinese company.

Huawei and Google are discussing possible "emergency relief measures" for its smartphone business, which might lose access to some of the American company's services, Ren said.

Google, a unit of Alphabet Inc., did not respond to a request for comment on the licence.

Ren Zhengfei, the Chinese tech giant's CEO and founder, told state media outlet the Global Times on Tuesday that the company is well-prepared for US sanctions, adding that temporary relief from those trade restrictions doesn't mean much to the company.

Almost 16 per cent of Huawei's expenditure on components past year went to US firms including Qualcomm, Intel and Micron, analysts said.

"Apple has a good business ecosystem".

"If you have a Huawei phone, don't freak out, the Play Store is not being removed", Moniz says. Huawei would do everything in its power to mitigate the impact of the USA decisions, Liu said. "There are many questions that no-one can answer yet", Jeronimo said.

Huawei has addressed the uncertainty and answered some of the questions emerging in the minds of users following Google's restriction.

Other reports by Click Lancashire

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