Beijing on Wednesday (September 4) accused the United States of using its power to suppress a specific Chinese company without providing any evidence after China’s Huawei Technologies said the U.S. government had instructed law enforcement to “coerce” and “entice” its employees to turn against the company, as it steps up its pushback against a U.S. campaign that could threaten its survival.
Huawei on Tuesday (September 3) said the U.S. government was using its judicial and administrative powers as well as other means to disrupt its business and that of its partners.
“This kind of behavior is not only disgraceful, it is also immoral,” Chinese foreign ministry Geng Shuang said at a daily news conference, adding that the United States should stop its “irrational” pressure on Chinese companies and instead create a non-discriminatory environment for their operations.
Amid a trade war with China, Washington put the world’s No. 2 smartphone maker on an Entity List in May, in effect cutting off its access to essential U.S. components and technology, in particular, Google’s apps and services for Android devices. (REUTERS)
The status of Huawei in the United States market remains unclear after President Donald Trump announced plans to ease the trade ban against the Chinese company.
President Trump made the statement last week during the G20 Summit in Japan.
“We mentioned Huawei, I said we have to save that till the very end, we’ll have to see….One of the things I will allow however is, a lot of people are surprised, we send and we sell to Huawei a tremendous amount of product that go into the various things that they make, and I said that, that’s okay that we will keep selling those products,” he said.
However, despite the announcement, White House Economic Adviser Larry Kudlow said Huawei will remain blacklisted.
“Remember, Huawei remains on the enemy list, which is fundamentally a national security issue,” he said.
Meanwhile, trade talks between the US and China will continue next week to resolve a year-long trade war.—AAC (with reports from Mon Jocson)
The US has put Huawei on their trade blacklist and banned American companies from doing business with the Chinese firm due to security risk.
Google previously announced that Huawei’s newer smartphones will lose Android updates as well as apps including YouTube, Gmail, and Google Play.
Zhengfei alredy expressed concerns on the impact of the trade ban.
“We did not, in our initial assessment, expect it to be this serious. We had made our preparations, just like an old airplane, we had only protected our heart and our fuel tank, we did not protect the other necessary components. So in the next two years, the company will suffer a setback. Our output will drop by $30 billion and so our revenue would dip to around $100 billion this year and the next,” he said.
“Whether (Huawei’s) international smartphone shipments will drop 40%? Yes it will, drop by 40%. But the growth rate for Chinese smartphone sales is very fast, its very fast,” he added.—AAC
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