USA postpones sanctions for Huawei, China's telecom giant – 05/20/2019

The raging trade war between the US and China has entered the last hours on a new path. The conflict, which has intensified in recent weeks with new tariffs of $ 300,000 and $ 60,000,000 respectively, now spills over into the technology industry and places Huawei, the Chinese telecommunications giant, in the eye of the cyclone. This Monday, The White House announced that it had decided to postpone the sanctions in mid-August that he imposed on the company last week.

The new twist of the battle was evoked late last week, when Donald Trump banned US companies from doing business with foreign companies that claimed to spy on the country. Trump accuses Huawei of espionage in favor of the Beijing government without showing any evidence of indictment.

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Last Sunday, thanks to information provided by the Reuters news agency, Google had decided not to sell any more components and software to Huawei. the world's second largest smartphone maker behind the Samsung Samsung.

On Monday, the Bloomberg agency said the reduction in Google supplies was being followed by other US companies such as Intel, which manufactures microprocessors, Qualcomm, Xilinx Inc. and Broadcom. With this, the pressure on the Chinese conglomerate continues to grow, which introduces a scenario of unpredictable consequences.

This is precisely this last possibility – according to several badysts- which led the Ministry of Commerce to postpone the 90-day sanctions so that Huawei and its partners have the time "to maintain and support existing networks and equipment currently fully operational, including software updates," according to a document from the federal agency.

Google 's veto at Huawei leaves the Asian manufacturer' s devices without service updates as important as those of Android (with the exception of its free version) or Gmail. And add to the perplexity of millions of users on the planet about what will happen to their devices.

Specifically, the White House accuses the Chinese giant of stealing technology, selling products to Iran (a Washington veto) and having links with the Chinese government that make it a "threat" for national security ". These are the reasons that Trump gave. But basically, there are other important elements.

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Huawei's strong growth does not embody China's challenge to Western economic powers. Founded 30 years ago, the company has become the world's leading manufacturer of technology products and the second largest mobile phone seller, surpbaded only by Samsung. But the company is also a leader in the development of 5G networks, the communication channel of the future, whose throne is also at the bottom of the battle. In the end, the question is about technological supremacy.

Before the announcement of Google, the Chinese firm reacted by seeking to give tranquility to its users. He said he would guarantee security updates and after-sales services to mobiles already sold or in storage. In addition, the Shenzhen giant had already announced that it was preparing for a possible reduction in its supplies and that it was developing its own chips and operating system for some time. Beijing has asked Huawei to "defend his rights and lead the legal battle" against Trump's decision.

Sources: AFP, EFE and AP agencies