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Author Topic: U.S. action tightens action on Huawei  (Read 14656 times)

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U.S. action tightens action on Huawei
« on: May 17, 2019, 12:14:08 AM »

Back in December, Chinese corporations led a small boycott against the Apple iPhone. At the time, Canadian law enforcement officials had just arrested Huawei CFO Meng Wanzhou based on a U.S. arrest warrant. Several Chinese businesses began to subsidize employee purchases of smartphones made by local firms while fining those who purchased an iPhone. Weeks later, Apple cut wholesale prices of the 2018 iPhones in China and the latest data from April seemed to indicate that Apple had turned the corner in the country. UBS analyst Tim Arcuri noted that iPhone shipments in China declined 3% last month on an annual basis. That doesn't seem like anything for the gang in Cupertino to cheer about until you compare it with the much larger declines seen during previous months.

But if Apple was turning the corner in China, it might be about to run into a wall. According to BuzzFeed, the Apple boycott is once again picking up momentum in China. Why? Because yesterday, President Donald Trump declared a national emergency over threats to U.S. technology. As a result, stateside carriers cannot install networking equipment from foreign companies considered to be a threat to U.S. national security. The executive order doesn't mention Huawei, but it is obviously aimed directly at the global leader in networking equipment. In addition, the U.S. yesterday put Huawei and 70 of its affiliates on a list of companies that cannot purchase U.S. technology without a license granted by the U.S. government. As fellow national security threat ZTE found out last year when it was the subject of a U.S. export ban, not being able to purchase U.S. parts can seriously damage a Chinese tech firm. But Huawei does have the advantage of designing its own chips and there have been rumors about it developing an in-house alternative to Android.

News of the national emergency declaration came after Huawei chairman Liang Hua said in Britain that Huawei would sign a "no-spy" document with any country. The fear is that the communist Chinese government can demand at any time that tech firms in the country help it obtain intelligence information. Rumors that Huawei has built backdoors into its products for the express purpose of being a conduit to China's government have never been proven, and the company has denied that it has ever spied on a foreign country.


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