Six weeks after being blacklisted by the US government, Huawei may not have to use its “plan B.”
Huawei shared the message on one of its Twitter accounts: “The turning point? Donald Trump said it would allow Huawei to buy US technology!”
Huawei after the ban removal
The message came after the US president announced on June 29 that “US companies can sell their components to Huawei.” However, Huawei continues to be in the “black list.”
The US Department of Commerce, which issued a ban on Huawei in mid-May, has yet responded to how Trump’s decision will change Huawei’s status in the US. However, White House economic adviser Larry Kudlow told Fox News that Trump’s move is not a “pardon.” He reiterated that Huawei could only trade in the United States, if it does not cause national security concerns.
The Chinese technology firm earlier said it had predicted a ban on the US. Therefore, it had stored enough chips and other important components to keep running for at least three months. They also have a “plan B” that builds an operating system running on phones and servers called HongMeng OS or Ark OS. The company scheduled to launch later this year in China and early next year in the international market.
American has long suspected Huawei of abetting the Beijing government to spy on governments. Meanwhile, Chinese technology firm claimed that it had done nothing wrong. The company has been trying to lobby for the past 6 weeks. This action was to have the opportunity to cooperate with US businesses – a key supplier of components.
The supplier of Huawei
Huawei buys up to $ 11 billion of goods from US companies like Intel, Micron, Google. The company even predicts a loss of about $ 30 billion in revenue within two years after the US embargo.
However, analysts believe that US companies are also suffering from the ban. Because they are selling “a huge amount of products” to Chinese companies.
Micron sees Huawei as one of the largest customers and, is facing a drop in revenue. Sales of smartphone components in the international market of the company fell 40%. This happened in the past few weeks as soon as Huawei was blacklisted. Last week, Micron said that he is seeking a detour to avoid the ban. Meanwhile, Intel is also said to be working on a similar strategy.