Huawei Responds To US To Restrict Access To Supplies | New

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Huawei Technologies, in its first official response to the Trump administration’s decision to restrict access to global chip supplies, called it “arbitrary” and said its business would be affected.

“We expect that our business will inevitably be affected. We will do our best to find a solution, “President Guo Ping said in his opening remarks at the annual Huawei Global Analyst Summit on Monday.

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“Survival is the key word for us right now,” Guo said in a question and answer session.

Guo said Huawei has made a commitment to abide by U.S. rules and has significantly increased research and development and inventory to respond to U.S. pressure.

The decision made on Friday by the United States Department of Commerce extends the American authority to require licenses for the sale to Huawei of semiconductors manufactured abroad with American technology, considerably extending its scope to stop sales to the second manufacturer of most popular smartphone in the world.

The company was added to the Commerce Department’s “list of entities” a year ago due to national security concerns, while Washington accused the United States of violating US sanctions against Iran and d spy on customers. Huawei has denied the allegations.

But China’s hawks in the Trump administration were frustrated that Huawei’s list of entities was not doing enough to restrict its access to supplies.

Huawei said the new US decision was “arbitrary and pernicious, and threatens to undermine the entire industry around the world.”

“Huawei is adamantly opposed to changes by the US Department of Commerce to its rule on foreign direct products that specifically target Huawei,” he said in a statement, adding that Washington was adding it to the list of entities a year ago was also without justification.

Guo said Huawei spent $ 18.7 billion on purchases from US suppliers last year and will continue to buy from them if the US government allows it. He said customers had supported the company, but acknowledged that it has become more difficult to win contracts since the company was added to the list of entities.

The company had to rewrite 60 million lines of code and invest more than 15,000 man-years in research and development to cope with the pressures created by its listing.

He said Huawei has since remained committed to abiding by all U.S. government rules and regulations, but despite its efforts, the U.S. government has decided to pursue and ignore the concerns of many companies and industry associations.

Huawei, which needs semiconductors for its smartphones and telecommunications equipment, found itself at the heart of a battle for global technological domination between the United States and China, whose relationship has deteriorated in recent years. recent months on the origins of the deadly coronavirus.

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