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Sudden reversal! Huawei is temporarily saved

Latest update time:2019-05-18
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The U.S. Department of Commerce announced that Huawei and its subsidiaries will be included in the controlled "Entity List", which means that if Huawei wants to purchase products and technologies from American companies, it must obtain permission from the U.S. government. Considering the purpose of the U.S. government, it seems impossible for Huawei to obtain a license.


Huawei immediately responded in various ways, firmly opposing the US decision. At the same time, it emphasized that Huawei had anticipated this many years ago and had made huge investments and sufficient preparations in research and development, business continuity, etc., to ensure that under extreme circumstances, the company's operations would not be greatly affected. The HiSilicon Kirin chips that had been used as spare tires for many years all turned "positive" overnight.


Now things seem to have turned around. Reuters exclusively reported that the US Department of Commerce may reduce some of the trade restrictions on Huawei in the near future and provide Huawei with a 90-day "Temporary General License" to allow Huawei to continue to purchase US goods.


Reuters believes that the US move is mainly to protect American companies that purchase and use Huawei equipment so that they can maintain the operation of existing networks and equipment and avoid sudden interruptions in related services and suffer collateral losses.


However, Huawei still cannot directly purchase parts from American companies to manufacture new products.


It is worth mentioning that about one-third of Huawei's core suppliers are American companies. However, Huawei products are not widely sold in the US market, and the Americas market contributes only 6.6% to Huawei's total revenue.


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