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China criticizes USA action against Huawei

18 May 2019

Australia, Japan and Taiwan have moved to limit use of Huawei technology.

But while size matters, so does a far-sighted business strategy.

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

The European Commission, the EU's executive branch, has not told national governments to avoid using Huawei's 5G equipment.

How has it gotten so big? .

For several weeks Huawei's representatives have been telling journalists the worst of the storm has passed, as European governments and operators have resisted the United States campaign against the controversial Chinese vendor. Huawei denies involvement in Chinese spying.

Ren, now 74, founded Huawei just when two epochal events were gaining pace: China's manufacturing boom and the telecommunications age.

Moreover, as well as providing fast networking for consumer technologies, 5G applications in the industrial sector are being developed. Huawei will have to procure parts from US firms like Xilinx, Texas Instruments and Analog Devices, according to Simpson.

The African continent has not been in the forefront of early 5G adoption, but its more advanced economies provide potentially fertile markets. Hong Kong was down 0.3 percent, with ZTE, another Chinese telecoms equipment provider, shedding more than four percent.

Huawei's head of USA congressional, state and local government affairs Don Morrissey said in a later interview with CNN that "All options are on the table", and "Huawei is committed to finding a remedy as fast as we can". He insisted the growing campaign against Huawei remained a separate matter from broader trade negotiations between the United States and China, which have stalled in recent days.

"For us, the security criteria are the decisive starting point in terms of deciding who will participate in the expansion", Merkel said, adding that the criteria are not directed against individual countries or companies.

It's not just hardware from USA companies - including Qualcomm, Intel, and Micron - that Huawei needs and the government would have to approve, but anything else coming from the United States, including software. It accused Huawei of providing banned financial services to Iran bypassing United States sanctions and also attempts to obstruct justice during the investigation into these violations.

Edward Alden, senior fellow at the Council on Foreign Relations, said the Huawei case was a significant complication to the resolution of the trade dispute. Although the EAR allows companies to apply for a license to continue to sell or transfer items to a company on the Entity List, any such application will be subject to a presumption of denial.

"We have noted the US Department of Commerce decision".

"Huawei may be deemed effectively state-owned", they concluded.

For small optical vendors that count Huawei as a major customer, such an export ban would be devastating.

Balding was more explicit on Twitter today.

The two sides are also at odds over how much more US goods China would buy and how "balanced" the text of the draft trade agreement would be, Chinese state media said.

The U.S. Department of Commerce said Wednesday it was putting Huawei on a blacklist that could ban it from doing business with its American suppliers. Some comments from the Trump administration have been positive for stocks, while others have shaken markets.

But it was unclear whether Trump would fully implement the policy, he said, and business realities would likely result in approval for most tech sales to Huawei.

"It is still not clear the extent to which the administration is using this as a new weapon in its campaign against Huawei (our preliminary take) or a negotiating tactic in trade talks", Triolo wrote in an analysis piece.

China criticizes USA action against Huawei