U.S. side revealed to extend temporary permit for third time Huawei: whatever

The US’s inclusion of Huawei on its “entity list” in May was intended to hit the Chinese company hard, but it triggered a survival crisis for Huawei’s upstream US supplier, the downstream US telecoms operator, which has been extended twice. Huawei, by contrast, has maintained a high growth rate. Ren Zhengfei, Huawei’s founder and CEO, seems to have made the “worst-case scenario”. In an interview with German media earlier this month, he revealed that Huawei now needs the United States to solve the supply problem. On the issue of “removing and withdrawing the list of entities”, Mr Ren believes that the US can now “love it” and that “the US side needs to consider the interests of US companies, not Huawei”. ”

Now the second extension of the “entity list” is still two days to go into effect, at a time when several U.S. media quoted sources as saying that the United States intends to extend the “Huawei Temporary License” for a third time.

U.S. side revealed to extend temporary permit for third time Huawei: Ai-Yin

Is the United States still buying time?

The U.S. “entity list” for Huawei will take effect on November 18, U.S. Eastern Time, when Huawei’s business cooperation with Upstream Suppliers and Downstream Customers in the U.S. will be subject to regulatory and restrictions by the U.S. government. And from November 14 to 15, Politico, The New York Times and Reuters, citing sources, the White House plans to delay the ban for a third time.

PoliticO News reported that it was “six months” regarding the length of the extension. It is also the “longest extension” the U.S. has ever imposed on the ban. The first two (22 May and 19 August) announcements by the United States of a 90-day extension of the “entity list”.

But a Reuters source said the delay was only “two weeks.” It’s worth noting that the Federal Communications Commission last month planned to ban U.S. companies from using U.S. government subsidies to purchase Huawei equipment. At some point, the FCC’s vote on the matter will begin next week.

Rural U.S. operators are among the victims of the Huawei ban.

The “entity list” comes after the US government warned the country’s rural operators to end their partnership with Huawei and promised a “$700m break-up fee”. After seeking offers from Huawei’s rivals Ericsson and Nokia, the operators found that Huawei’s equipment was cheap and could not be upgraded with U.S. government subsidies alone.

U.S. side revealed to extend temporary permit for third time Huawei: Ai-Yin

To date, the U.S. government is still discussing “how to get through the transition period” with the country’s rural telecommunications operators. “Unfortunately, they (rural telecom operators) rely heavily on Huawei’s 3G and 4G devices, ” U.S. Commerce Secretary Ross told FoxNews.com in an interview On the 15th. There are already enough problems in the field of communication in rural areas, and we cannot crowd them out. So one of the main purposes of the extension of the ban is to allow rural telecommunications operators to continue to provide services. “

From an upstream perspective, Huawei’s suppliers in the U.S. are having a hard time.

Sanjay Mehrotra, Micron’s chief executive, said in September that sales were likely to decline further in the coming quarters because of uncertainty over the Huawei ban. In the same month, Micron Technology reported a 42% year-on-year decline in revenue, down 23% for the year. Among the reasons given in the earnings report were “affected by the Huawei ban”. Broadcom also slashed its annual revenue forecast in June, citing “disruptions in business with Huawei”.

U.S. side revealed to extend temporary permit for third time Huawei: Ai-Yin

Screenshot of Micron Technology’s Four Seasons Report

On the contrary, Huawei’s performance is noteworthy.

On November 11, Liu Wei, vice president of Huawei’s Canadian public relations department, told the Observer.com that Huawei has now received another update of its commercial 5G contracts around the world, reaching 65, ahead of its peers. The company last month reported revenue growth of 24.4 percent year-on-year, as it reported revenue for the third quarter of 2019.

Robert Atkinson, president of ITIF, a Washington think-tank, said: “Unless the ban succeeds in ‘killing’ Huawei, the result will be a reduction in the US global market share in many technology areas, which will undermine, not help, US technological competitiveness.” Forbes wrote on November 15th that while Huawei’s new handsets could not be sold abroad, there was no doubt that huawei was doing very well.

“Without relying on the United States, we can now solve the supply problem,” Ren Zhengfei, Huawei’s founder and CEO, said in an interview with German newspaper TAZ on November 6. The U.S. puts Huawei on the list of entities, and Huawei survives… The physical list won’t hurt Huawei, but it will hurt U.S. companies. The U.S. government loves to withdraw, does not love to withdraw is not revoked, only need to consider the interests of U.S. companies, do not need to help us consider. “

U.S. side revealed to extend temporary permit for third time Huawei: Ai-Yin

Ren Zhengfei revealed that he had invited Associated Press reporters to visit Huawei’s devices, allowing them to take pictures of each circuit board with out of American chips and components.

Add a Comment

Your email address will not be published. Required fields are marked *