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Since ZTE (00763) was banned by the United States, the operating status of the continental technology companies in the United States has received a lot of attention. Hu Houkun, Huawei's current managing director, said in a French interview Sunday that there was no indication that Huawei would become the target of US sanctions and plans to continue buying wafers this year.
Committed to US and European legal oversight
Several US Congressmen criticized last month that Huawei's research grants to US universities pose a "significant threat" to national security. Huawei, the world's largest provider of telecommunications equipment, asked if Huawei pledged to abide by the laws and regulations of Europe, the United States and the United Nations. He added that 10 years ago, Huawei had put in place an export control system, which was very effective.
ZTE had previously been banned from buying parts in the United States and its operations were in shock. When asked if Huawei can maintain its activities without American parts, Hu Houkun says that the Group's supply chain is internationalized, that it maintains an open attitude, chooses the best technologies and products and continues to buy wafers from the United States this year.
As part of the war of four trade wars, Huawei's development in the US market is not easy. The Wall Street Journal reported that the US Federal Communications Commission had previously recommended to US rural telecom companies to buy Huawei equipment, saying it threatened national security. Huawei countered that the measure will hurt the interests of rural areas and low-income people in the United States, and increase the cost of small telecommunications companies.
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