Huawei, the smartphone manufacturer, has been facing complications with the US Government. It first started out as data security accusations that affected the Chinese tech giant’s operations in the western nation and soon even saw it being banned from accessing various US based technological components and software as well. The restrictions had seemed to ease up by a bit at the end of 2019 but are now expected to become even more strict in 2020
Ren Zhenfei, Co-Founder of Huawei group has previously stated that he expects US to take severe actions against the Chinese OEM in 2020, which has now turned out to be true. Since, US Commerce department’s Secretary, Wilbur Ross, revealed that plans are underway to step up the trade ban against Huawei. This will further prevent trade relations with more firms that are based in the US.
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Reportedly, companies from the US can export products and components to Huawei only if 75 percent of the end product is sourced and made in foreign lands. However, the US Commerce Department is hinting that it would raise this number to 90 percent, which means Huawei can only source 10 percent of its product from US based corporations. The restrictions do not end there since more actions are expected to soon follow as reports suggest that the US Government is considering a separate regulation for the Chinese OEM altogether.
The founder of Huwaei has stated that the company is better equipped than last year to survive further attacks from the US Government. But we will have to wait and see how the situation pans out for the company and what impacts the US-China trade deals bring to the deteriorating trade relations between the East and West.
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