Huawei has reservations for three months before the ban

Huawei has stockpiled enough chips and other essential components to ensure business continuity for at least three months, while the United States limits access to US technology, say people familiar with the subject.

The Trump administration has included Friday China's largest tech company on its blacklist – accused of having aided spying in Beijing – which threatens to reduce software and semi offerings – American drivers necessary for the manufacture of smartphones and computer equipment. network But the company is preparing for such an event since mid-2018., accumulate components and design their own chips, said these people.

Government officials have also privately warned Huawei's leaders last year to explore non-US alternatives, according to those people who have asked not to be identified because they are domestic politics. The three-month cushion is a conservative internal estimate and the company could continue beyond this deadline, they said.

Actions against the Chinese national champion can have devastating consequences for the rest of the world. Block sales to Huawei of critical components such as semiconductors could cripple its business, depress the business of US chip giants such as Qualcomm and Micron and delay the deployment of 5G wireless critical networks around the world.

"The impact on Huawei will be extremely important." The impact is evident in the supply chain, but the same is true for trust and its business in general, "said Cui Kai, telecommunication badyst at IDC, will have a negative impact on the evolution of the supply chain. 5G technology around the world ".

Answer by Huawei

Ken Hu, vice president of Huawei, reacted to the US decision in a note to employees.

"This decision is the latest initiative of the campaign against Huawei undertaken by the US government for political reasons," he wrote. "The company has been aware of this opportunity for many years, we have invested heavily and have made comprehensive preparations in various areas, including R & D and business continuity. which will ensure that our business operations will not be affected even under extreme conditions.

The United States maneuver coincides with the delicate trade negotiations between Washington and Beijing. Huawei executives believe that their company has become a trading chip and that they can resume buying from US suppliers if a trade deal is concluded, said the people. That's why they calculate that a reserve of three months can be enough to cope with the tide.

If Huawei's calculation is incorrect, the consequences would be terrible. If the ban is not resolved with the commercial dispute, the company's ability to provide advanced wireless networks will be severely hampered. Much of their network and smart phone business, the two pillars of society, would be at risk.

Huawei's total ban raises fears in Beijing that President Donald Trump's broader goal is to paralyze China by initiating a prolonged cold war between the world's largest economies. In addition to a commercial struggle that has shaken world markets for months, The United States is putting pressure on their allies and their enemies so that they avoid using Huawei on 5G networks it will be the backbone of the modern economy.

Suspicion of espionage

At the heart of Trump's concerted campaign, there is the suspicion that Huawei is helping Beijing in spying and is leading China's ambitions to become a technological superpower. The Justice Ministry also accuses the company of violating voluntarily the sanctions against Iran. Last year, she was behind the arrest of the eldest daughter of billionaire Huawei's founder. The company repeatedly denied the allegations.

Long-term, Huawei still needs to insure its customers – many of the largest telecom operators in the world – who can not only build, but also maintain their wireless networks.

The fate of Huawei highlights how much China as a whole depends on foreign flea technology: the country now imports more semiconductors than oil. While Huawei and its partners such as Tsinghua Unigroup are designing more and more advanced architectures, their production has not reached a level of production sufficient to reduce this annual flow.

However, business continuity plans have been in place in Huawei for years. Teresa He, president of Huawei's chip manufacturing unit, HiSilicon, qualified for ban by the US "crazy" and "unfounded" in a letter sent to employees and seen by Bloomberg. While HiSilicon was considered a contingency plan for Huawei's semiconductor needs, this ban will make it a major supplier, he said in his letter.

To answer questions from Huawei users on the steps to follow to comply with the recent actions of the US Government: We badure you that, even if we comply with all the requirements of the US Government, services such as Google Play and security Google Play Protect will continue to work on your existing Huawei device.

– Android (@ Android) May 20, 2019