Huawei chairman urges USA to ease trade curbs

Yolanda Curtis
September 27, 2020

4, 2020, shows a Huawei shop in Beijing.

Chinese telecom giant Huawei Technologies [HWT.UL] said on Wednesday its supply chain was under attack from the United States and called on Washington to reconsider its trade restrictions which were hurting suppliers globally.

"Huawei is in a hard situation these days".

"The U.S. has modified their sanctions for the third time and that has indeed brought great challenges to our production and operations", Huawei Chairman Guo Ping told reporters in Shanghai.

"Right now, survival is the goal", he said.

In May, Washington amended a rule to require foreign manufacturers using USA chip making equipment to obtain a license before being able to sell semiconductors to Huawei.

Intel already received licenses to supply certain products to Huawei, while China's Semiconductor Manufacturing International Corp, which uses US-origin machinery to produce chips for Huawei, has applied for a license.

Analysts have called the latest United States sanctions a "lethal blow" and a "death sentence" for the company.

The moves showed the licenses Intel has secured from the USA government a year ago allow it to continue shipping products, including computer processors and data center chips, to Huawei even after Washington's new curbs took effect earlier this month.

Several analysts estimate that Huawei has stockpiled enough semiconductors to last the company through at least the end of the year. Speaking about the investment pull off done in Australia, the company said Australia is a very small market and what the company did there is simply some strategy adjustments and they will continue their expansion in global as well as domestic markets.

And since 15 September, the company can no longer buy key chips from its manufacturers.

South Korean chipmaker SK Hynix also applied for USA license for Huawei sales, but it has not yet gained approval, a person familiar with the matter said.

Some companies have gotten the green light, including Intel. Yet Intel's confirmation it has received a license raises questions about the United States government strategy. Intel has in the past supplied processors for Huawei laptops.

Huawei is also under siege elsewhere.

Huawei's telecommunications gear is another matter.

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