US President Donald Trump recently announced the withdrawal of the restriction of US companies to do business with Chinese tech mogul Huawei. He started the restrictions in July, but the 90-day license extension will be lifted Monday.
The Huawei 90-day license extension nears expiration, Reuters reported that Trump would announce this Monday the lifting of the ban of US companies from working with Chinese telecom company Huawei.
The report indicated that this may not be an absolute grant to the company as the final decision would only be made on November 18, 2019. Pending the announcement of Trump, the US blockade of Huawei's global operations into the US remains in force.
According to My Smart Price, Huawei is dependent upon the British firm ARM who supplies the architecture design of the company's products. ARM has strong business ties overseas and following the executive order issued by Trump, ARM followed suit and refrained from conducting business with Huawei.
The fate of the company was said to have been uncertain due to the ban, reported the New York Times. The American government declared that Huawei was a threat to US national security, but China countered and found it as a means to block the country's technological ambitions in the global market.
As a result, in May 2019, Huawei also lost the authority to utilize the chipset of its Kirin processors based on the ARM designs on its mobiles. It was also restricted from using MediaTek and Qualcomm technologies which use ARM's Reduced Instruction Set Computing (RISC) design for smartphones.
During the ban, Huawei had constructed the advanced 5G networks that are the most advanced wireless communication to date. The technology was then blacklisted from buying American products without the approval of the government such as the ARM designs. However, Commerce Secretary Wilbur Ross announced that some rural carriers need temporary licenses as well since they are still dependent upon the company's 3G and 4G technological networks.
Thereafter, Huawei failed to establish a deal with the US to acquire a business license which led to the decline of its sales, indicated the report. This was also the reason behind the suspension of Google Services to Huawei smartphones in recent months. This included the de-listing of the company, is Wi-Fi Alliance, and its Bluetooth Special Interest Group - services detrimental to the brand and its products.
The report also indicated that Huawei may not be a part of the China-US trade war, but business activities have supposedly been greatly affected by the tariff war. The report also indicated that the trade talks have become the primary bargaining chip of the US against China.
