Huawei denies cutting down smartphone production amidst United States crackdown

Posted June 07, 2019

The US government aimed at China by blacklisting 67 Chinese companies which would restrict them from doing business with any of the US-based companies.

The two countries that sell the most smartphones - the USA and China - saw sales decline by 15.8 per cent and 3.2 per cent respectively, according to Gartner amid slowing innovation and rising prices.

And China might retaliate with similar bans against USA technology "that ultimately stagnates our tech leadership around the world", Katie Moussouris, founder of Luta Security, warned.

The ongoing saga between Chinese company Huawei and the U.S. government has seen the company offering a deal. This wasn't the first time Huawei has been targeted by the US government.

Last month, Britain's National Security Council, chaired by May, recommended Huawei should be allowed to build some parts of Britain's 5G networks, putting Britain in conflict with United States demands, people familiar with the meeting said.

If the U.S. export restrictions stick, Huawei may find it tough to maintain that growth, and its top rival Samsung could be among the beneficiaries. The company has beefed up the development process of its home OS Hongmeng to counter Android.

Huawei Marine Networks is a joint venture between Huawei and UK-based undersea cable firm Global Marine Systems.

The reported China's list will consist of "unreliable" foreign companies, individuals and organizations. "We have to look at the technical issues which are around whether buying products from a specific country could be a backdoor to espionage, we're looking at those very carefully", he said.

Chris Finan, cybersecurity director on the National Security Council during the Obama administration who's now CEO of Manifold Technology, called the ban an "act of self-immolation in the name of security" and argued it "will do nothing to change Huawei's or Chinese government behaviour over the long term".

The ban on Huawei has apparently forced many other countries to cut their ties as well.

Paul Triolo, of the Eurasia Group (a worldwide risk valuation company), stated how they believe this might signify Beijing's initial efforts towards a retaliatory agenda.

China is also planning to restrict exports of rare earth minerals to the US. 'We will maintain our existing supply chain and will continue to place orders with U.S. companies. Justifying combating China's rising technological dominance and capabilities as a centerpiece of US foreign policy is debatable. China will only trigger it if the trade war keeps on getting momentum and get too deep.

A team of British officials is set to visit the US Department of Commerce to ask for guidance on the extent of the ban, according to the person, who asked not to be named because the information is not public.

Liang accused the US of inappropriate conduct, while at the same time struck a conciliatory tone - a response reflecting the level of exasperation now felt by the Chinese tech giant.

Huawei Technologies Co Ltd has cut or canceled orders to major suppliers of components for its smartphones and telecom equipment following its US blacklisting, the Nikkei reported, claims that were rejected by the Chinese firm. This chip is expected to be used in the Huawei Mate 30 series.