Huawei ban likely to continue even under Biden’s rule

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After getting blacklisted by the Trump administration in 2019 over national security concerns, Huwaei has been going through a tough time in the smartphone domain. And there appears to be no imminent relief as the U.S. President Joe Biden’s nominee to a post overseeing export policy on China says the Huawei ban is likely to stretch further.

Huawei

Not just that, the Under Secretary of Commerce for Industry and Security, Alan Estevez has also pledged to keep a close eye on Honor Device Co to see if Huawei has parted ways with the company with an aim to create a cleaner image of Honor and evade or at least minimize the blacklist repercussions. “I’ve seen previous maneuvers by the Chinese,” testifies Estevez at a hearing of the Senate banking committee.

Huawei said it was under tremendous pressure due to the unavailability of components used for smartphone manufacturing due to the ban and therefore, has decided to sell Honor. Huawei says that it is no longer involved in any business operations or management activities of Honor and is not holding any shares as well.

It is also being reported that the Biden administration is considering the option of extending the ban to Honor after lawmakers raised valid concerns about the company in a letter to Commerce Department Secretary Gina Raimondo last month.

Huawei is going to stay on the blacklist as long as the U.S. believes it is a national security threat to them, irrespective of who stays in power. That said, Huawei will incur further losses as it is still on the lookout for alternatives to American components.

 

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