Huawei to Seek Remedies in Face of US Ban

A man using his mobile phone walks past a yet-to-open Huawei store inside a shopping mall in Shanghai China

Chinese technology giant Huawei voiced its objections to the United States' recent move to "blacklist" the company, insisting the rash decision by President Donald Trump is in no one's interest. A Qualcomm spokeswoman said the company had no comment.

Who will go down in the battle between the USA and Huawei? We are breathlessly informed that 26,000 jobs, £470m in taxes, the salaries of 16,900 nurses, the smile on Mary Poppins' face and the odds of snow on Christmas Day all emanate from Huawei in Britain, directly and indirectly.

She says looking at Wednesday's executive order from Trump, "In some places, if you did a blind test with China's cybersecurity law and tried to guess which is which, it would be hard to tell". Huawei's warning to the U.S. government, the sanctions could endanger tens of thousands of jobs in the United States. "Assuming the USA export ban on Huawei remains unresolved for the next 12-24 months, we highly doubt if China would stick to its timetable of building 5G aggressively", Jeffries wrote in a note seen by Reuters.

Today, about 40 USA operators fall into that category, and there is little sign they are prepared for a ban.

A surveillance camera is seen in front of the Huawei logo outside its factory campus in Dongguan March 25, 2019.

In Thailand, Huawei has already launched a 5G test project. VTel, a wireless network operator in Vermont, said in March that it was substituting Ericsson for Huawei in parts of its network in support of United States policy, even though it had not seen evidence of any security threat.

Carpet-bombing the supply chain It is not just USA operators that may suffer. This was further confirmed minutes later by the Commerce Department having the announcement adding Huawei to the so-called entities list, which means that for American companies that do business with Huawei, from now on they would have to acquire export licenses before they sell their technologies for Huawei to use.

However, it made no direct reference to China, with whom Washington is engaged in a bitter trade dispute.

Huawei has reportedly stockpiled 12 months worth of stock of key components in anticipation of the move. That was further demonstrated in Argentina back in November a year ago.

If Huawei "can't get the widget or the part or the software update to keep functioning, then those systems go down", he said.

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"There is time for the United Kingdom government...to reconsider the Huawei decision", said Sir Richard Dearlove in a report by the Henry Jackson Society.

Huawei has more than 13,000 component and service suppliers worldwide. The company denied its products pose a security threat and say it is independent of the Chinese government. Thirty-three of them are from the U.S., including chip giants Qualcomm Inc and Intel Corp.

Canada said it is now making an assessment of security risks of 5G technology and won't be hurried into settling on whether to ban Huawei from wireless network construction in Canada, regardless of Trump's executive order. With Taiwan's robust capabilities in the telecom industry and computer component manufacturing, the country should capitalize on the disrupted global supply chain in the wake of the Trump administration's Huawei ban.

The domestic economic impact will be restricted mostly to small rural carriers for whom Huawei equipment has been attractive because of its lower costs.

Wang Yanhui, secretary-general of the Mobile China Alliance, said, "Huawei has also been preparing for such a situation for some time and has hoarded chips to handle a worst-case scenario".

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The company became the world's third-largest buyer of semiconductors previous year. It is also trying to become more self-reliant.

Meanwhile, Japan said the US' latest move could affect Japanese firms and weigh on economic growth.

But there is no reason why it should be Huawei - and some very good reasons why it shouldn't be. Last year, a ban on USA component sales to ZTE nearly drove the smaller Chinese vendor out of business. The worry is that customers affected by the ban are taking their business elsewhere. He did not give any details over how China planned to retaliate. Those plans included stockpiling equipment and drawing up contracts to secure the transfer of knowledge and expertise.

Huawei paid consulting outfit Oxford Economics to write a report saying the company's British activities are worth £1.7bn to the UK GDP. Replacing them could take years.

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