Huawei ban results in collateral damage for US-China trade negotiations

Friday, 07 Jun, 2019

The White House has since issued a three-month reprieve, but once the grace period is over, new Huawei smartphones will not have access to Android's app store or operating system, or popular Google apps like YouTube, Google Maps and Chrome. It is sandwiched in the U.S.

On Friday, China warned how it was constructing a list of foreign firms, organizations and personal it deems untrustworthy directing it as retribution for the United States sanctions on the Chinese company Huawei.

The move comes as the Trump administration's Huawei ban has started to sting. It is expected that the country will ban all those companies based in the US, Britain and Japan to operate or have any kind of business relationship with any Chinese companies.

Optical components maker Lumentum Holdings Inc ceased all its shipments to Huawei, while USA chipmaker Qorvo Inc said it expects first-quarter revenue to take a $50 million hit due to a halt in shipments to the Chinese company.

In France, sales of premium Huawei smartphones fell by about one-fifth in the week after the U.S. blacklisted the company, according to a telecom industry representative who asked not to be identified as the figures are private. Earlier this month, Google announced that it would no longer grant an Android license to the Chinese company by following a White House executive order that effectively blocked the company in the US.

The U.S. government has been trying, albeit unsuccessfully, to convince their European counterparts to give up business with Huawei.

Officials said they had no clarity about whether the final decision will be taken by May or her successor, risking uncertainty in the telecom sector. It is anxious that China may have access to the information transmitted through its systems.

Liang made the comments while speaking with a small group of USA journalists who were visiting with the China-United States Exchange Foundation.

Last November, Canadian authorities arrested Meng Wanzhou, Huawei executive and daughter of founder Ren Zhengfei, at the request of US authorities on suspicion of violating the Iran trade sanctions.

Others less sanguine about the ban said it was an extreme outcome that could have been avoided.

Huawei has become the most visible target of the US government in the clash over trade with China.

Huawei did say that it is working with Google in order to amend the issue, even though we don't see how will they do that considering that the ban applies to U.S. companies, and Google is a US-based company.

USA chipmakers such as Intel, Broadcom and Qualcomm have reported told their employees not to supply to Huawei until further notice.

Huawei is reportedly considering selling off its undersea telecom cable business for an undisclosed sum of money.