Huawei calls on the United States to "add unfairness" to the list of entities



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The US government's decision to add other members of Huawei to a blacklist is "unfair" and "political" and will not help the country to strengthen its technological leadership, said the Chinese giant telecommunications.

US Secretary of Commerce Wilbur Ross announced on Monday that he was extending the temporary stay of Huawei by another 90 days so that he could continue to do business with US companies. The deadline had expired Monday. However, the Bureau of Industry and Security (BIS) has also added 46 subsidiaries of Huawei to the blacklist.

"These actions violate the basic principles of free market competition and are not in the interest of anyone, including US companies," said Huawei in a statement released on Tuesday.

In May, Huawei was placed on the list of US entities, which banned US companies from doing business with the Chinese company. Shortly after, the government offered Huawei a 90-day reprieve that allowed US companies to continue to sell them limited and specific products.

"While we continue to urge consumers to move away from Huawei's products, we recognize that it takes longer to avoid any disruption," Ross said in a statement.

Some rural US mobile networks use Huawei devices, while some US technology component companies rely on a significant portion of the Chinese giant's revenue.

Ross reiterated his concern that Huawei poses a threat to national security. The United States said the Chinese government could use Huawei's equipment as a back door to spying on Americans, allegations that the company has repeatedly denied.

& # 39; Unfair & # 39;

Huawei on Tuesday called Washington's decision to add more of its affiliates to the list of entities "for political reasons".

"Attempts to suppress Huawei's activities will not help the United States to achieve technological leadership," Huawei said in a statement. "We call on the US government to stop this unfair treatment and to remove Huawei from the list of entities."

The company added that the decision "will not have a significant impact" on the business. Huawei President Liang Hua said "neither production nor shipping has been interrupted, not for a single day".

Yet earlier this year, Huawei reduced its revenue forecast and predicted a $ 30 billion negative impact on revenue over the next two years.

At least for me, it is clear that the president considers Huawei as a currency of exchange and a point of pressure for a trade agreement …

James Pethokoukis

Dewitt Wallace Fellow at the American Enterprise Institute

Huawei is working to further develop the core technology it currently supports for US companies. The telecom equipment manufacturer continues to design its own processors and modems for smartphones.

He has also recently released his own operating system called HarmonyOS, although he currently uses Google's Android for his smartphones and Microsoft's Windows for laptops.

Richard Yu, CEO of Huawei's consumer company, said last week that if the company was permanently cut off from Google, it could switch to the new operating system "immediately".

Huawei a "negotiating pawn"

Huawei has been involved in the wider trade war between the United States and China. President Donald Trump seems to have sent mixed signals in recent months about the fate of Huawei in the United States.

In May, Trump said it was "possible that Huawei be included in a trade deal."

But just this weekend, the US president said that he did not want to do business with Huawei "because it's a threat to national security."

Some experts have suggested that the Chinese technology company was used as "currency of exchange" in the trade war between the United States and China.

"It is clear to me at least that the president considers Huawei as an exchange currency and a point of pressure for a trade agreement (…) there are certainly members of the government who would like to kill this company and they see him as a kind of James Pethokoukis, Dewitt Wallace Fellow of the American Enterprise Institute, told CNBC's "The Exchange" channel on Monday, "I just do not see evidence that Trump thinks that."

"That's the problem of the president … if he now says it's a national security issue, it's difficult, then it's hard to come up with a trade deal that does not involve any Huawei's limitation: it's difficult to see the end of the match there, "said Pethokoukis.

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