The multinational Chinese enterprise Huawei was blacklisted by the Donald Trump Administration. But yesterday, the USA retrieved the company from the blacklist with 90 days reprieval period.
The 90 days period will loosen the threads of strictly imposed tariffs on the company. This will make Huawei buy components to maintain the existing components while if they use the components for the manufacturing process, they need to go for the license approvals.
According to the US Secretary of Commerce, Wilbur Ross, the 90 days period is for the telecommunication carriers who rely on Huawei for the services and to tell them that they need to shift for the different service provider.
Following the whole scenario, Huawei has denounced US actions against the company as “bullying” and implored Europen governments to not bend over the American suits on the company. Yesterday, the company launched Honor 20, a lower priced phone with flagship features in the European market.
Huawei’s vice president for the European region, Abraham Liu said that Trump’s marks on Huawei are “unprecedented” and not only on the attack on Chinese firm but an attack on global based trade rules. A month ago, the UK allowed Huawei’s 5G ecosystem to enter in the country. While the company won’t be involved with the core system or sensitive networks.
The US government has warned European allies not to trust Huawei their networks and persuaded them to ban them. Donald Trump’s administration strict action against comes after when US intelligence found that Huawei is helping the Chinese government to spy on foreign networks. Huawei opposed the allegation on the company and conveyed that they won’t help any government for spying.
Many US companies have stopped the working flow with Huawei. The tech giant Google had banned the Huawei from Android’s license but have retrieved it for the 90 days. Chip maker company such as Intel and Qualcomm has complied to the US administration. Meanwhile, the company has said that they are working on their own operating system to surmount the difficulties in the market.
“They (Google) have zero motivation to block us. We are working closely with Google to find out how Huawei can handle the situation and the impact from the US Department of Commerce decision,” Abraham Lincoln said to Reuters.