NPR 18, the U.S. Department of Commerce issued a notice on the same day, announced the issuance of a 90-day extension of license, allowing U.S. companies to continue to do business with China’s Huawei Technologies Co., Ltd. It was the third time the U.S. government has declared an “exemption” for Huawei since it blacklisted huawei in May, Reuters said.
Original title: U.S. Media: U.S. Commerce Department Issues 90-Day Extension Permit, Third “Exemption” to Huawei
In rural Areas, where many telecom operators buy Huawei devices, the Trump administration’s third “exemption” means they can continue to buy Huawei products, NPR said. “The extension will allow telecom operators to provide services in some of the most remote rural areas of the United States, otherwise these areas could be plunged into darkness,” U.S. Commerce Secretary Michael Ross said in a statement.
Reuters had previously reported that the Trump administration was only prepared to grant Huawei a two-week extension of permission, but the plan changed over the weekend, and that the Trump administration was studying a longer extension, but only because regulatory measures had not yet been finalized. Huawei Chairman Liang Hua told CNBC on the 18th that whether or not the United States will extend the exemption, the impact on Huawei is “very limited.”
U.S. companies look forward to third “exemption” from Huawei
Trying to abandon a Chinese company may not be as easy as the Trump administration thinks. The U.S. government will issue a 90-day extension of the permit on the 18th local time to allow U.S. companies to continue doing business with China’s Huawei Technologies Co., according to two people familiar with the matter, two people familiar with the matter told Reuters. If true, it would be the third time the U.S. government has declared an “exemption” from Huawei since it blacklisted Huawei in May.
Reuters had previously reported that the Trump administration was only prepared to grant Huawei a two-week extension, but the plan changed over the weekend, and that the Trump administration was studying a longer extension, but only because regulatory measures had not yet been finalized. If so, Google’s service on Huawei’s products will be available by May next year, while U.S. rural telecom service providers will continue to purchase Huawei software and other devices. Huawei Chairman Liang Hua told CNBC on the 18th that whether or not the United States will extend the exemption, the impact on Huawei is “very limited.”
American rural operators can’t stand it.
The New York Times reported wednesday that in May, the U.S. Commerce Department added Huawei to a “list of entities” that prohibits it from buying U.S. products and prohibits U.S. companies from buying its equipment and services. The ban poses problems for U.S. rural telecommunications companies that rely on Huawei’s equipment and accessories, as well as U.S. companies that rely on selling to Huawei. To give them time to adapt to the new ban, the Commerce Department issued a temporary permit allowing U.S. companies to continue doing business with Huawei. On May 22 and August 19 this year, the United States announced a delay in the implementation of the “entity list”, both of which are 90 days, and if it is extended again on November 18th, it will be the third “exemption” that Huawei has received.
U.S. Attorney General Barr declared last week that Huawei and ZTE were “untrustworthy” and that the Federal Communications Commission is expected to vote this week on whether to ban U.S. companies from using government subsidies to purchase Huawei or ZTE devices. However, Commerce Secretary Ross told Fox News last week: “Unfortunately, our rural telecom operators rely heavily on Huawei’s 3G and 4G networks. Rural communication services already have a lot of problems – we don’t want them to be eliminated. Therefore, one of the main purposes of temporary licensing is to keep these operators operating. Huawei’s Chief Security Officer for the United States Andy Purdy told FoxNews.com on the 15th that, as Ross said, rural telecommunications in the United States is not developing enough, “we can help them.” He added that the U.S. listing Huawei on a “physical list” could affect thousands of U.S. jobs.
Before Huawei was blacklisted, U.S. lawmakers proposed a bill to provide up to $700 million to help U.S. carriers remove Chinese company devices, including Huawei, that are “at risk,” the Wall Street Journal reported. More than a dozen rural U.S. telecom operators that rely on Huawei’s network equipment then negotiated with Ericsson and Nokia to replace chinese devices, Reuters said. But they have relied on cheap, high-quality Huawei or ZTE mobile network equipment, and switching suppliers is not easy.
Analysts and executives at Nokia and Ericsson say both companies have struggled financially in recent years and are not as cheap as Huawei. Without discounts, rural Telecom stakes in the United States would not be affordable. U.S. telecommunications analyst Mr. Entner said operators in rural areas were not profitable enough, and if they could not afford the price of new mobile network devices, they would have to shut down their mobile networks and risk closure, meaning basic communications could disappear from those areas.
U.S. suppliers are in a hurry, too.
Huawei’s U.S. suppliers are having a hard time. According to the Financial Times, one-third of Huawei’s suppliers are U.S. companies, including Intel, Micron, Qualcomm, Broadcom, Sething, VTech and Nvidia. Last year, Huawei purchased $11 billion worth of parts and software from U.S. companies. Under the new ban, some companies have cut their sales forecasts for this year.
In the second month after the ban, Broadcom forecast that revenue would fall by $2 billion this year as a result of the U.S.-China trade war and Huawei’s ban, Reuters reported. Reported that Broadcom’s forecast is by far the U.S.-China trade war on the global industry damage is the most solid evidence.
The U.S. Commerce Department’s temporary permit does not involve major deals between U.S. semiconductor suppliers such as Intel and Qualcomm and Huawei, According to Politico. These transactions are still subject to export permits. U.S. chipmakers argue that most of the semiconductors used by Huawei’s handsets are available in the world market, and that exports to them do not represent a security risk to their countries. The U.S. semiconductor industry complains that the export ban hurts U.S. companies and gives the market to rivals in South Korea and Taiwan.
The Trump administration’s Huawei ban has left U.S. companies baffled, according to the UAE’s El Pais newspaper. More than five months after the ban, Huawei’s business remains active, and U.S. companies still don’t know if they can continue to work with the Chinese company. Executives at U.S. technology companies have been consulting behind closed doors with government officials for months, telling Trump officials that blacklisting Huawei would hurt their businesses.
Despite U.S. sanctions, Huawei’s revenue rose 24 percent in the first three quarters, according to Bloomberg News. At the same time, U.S. efforts to block Huawei’s involvement in global 5G have not had much impact: Huawei has won 60 5G commercial contracts worldwide.
U.S. allies appear to be loosening their stance on Huawei. Spark, New Zealand’s largest telecommunications company, said Wednesday that it abandoned plans to rely solely on Huawei to provide 5G services, but still listed Huawei as one of its three preferred equipment suppliers. New Zealand’s intelligence agency rejected Spark’s plans to use Huawei devices in November, citing national security risks.
Despite pressure from some lawmakers, German Economy Minister Altmeier made it clear before a cabinet meeting that he rejected the U.S. request to exclude Huawei from Germany’s 5G construction, the German news agency reported. Earlier, German Chancellor Angela Merkel has rejected U.S. Secretary of State Pompeo’s request to exclude Huawei from 5G construction, and the governor of Bavaria and Lower Saxony has publicly backed Huawei.
Huawei: No U.S.
On the 18th, Huawei Chairman Liang Hua told CNBC that Washington’s decision to allow U.S. companies to continue doing business with Huawei had little impact on China. He stressed that Huawei could deliver products, including 5G base stations, without relying on U.S. parts. Instead of allowing U.S. companies to sell to Huawei, it does more harm to U.S. companies than Huawei. Mr. Leung also said Huawei had no direct communication with Washington and had no channels to contact Washington.
“Without the United States, Huawei is building its own supply chain,” German weekly Der Spiegel recently reported a roundtable between some German media outlets, including the magazine, and Huawei founder Ren Zhengfei. The report described two giant paintings hanging on the wall of the conference room that day: Napoleon’s crown on his head and the Battle of Waterloo. But as Mr Ren says, victory or failure is not enough to describe Huawei’s real situation. The 75-year-old showed a black-and-white photograph of a Soviet World War II Il-2 fighter jet with its wings pierced by enemy artillery, but it still soared tenaciously in the air. “It’s a good symbol of Huawei’s current situation. Ren Zhengfei said, “Huawei aircraft are still flying.” We are working to fix the vulnerability. “
He told German media, “entity list” will not hurt Huawei, but will hurt Totheus Enterprises, “the U.S. government loves to withdraw, do not love to withdraw on the withdrawal, only need to consider the interests of U.S. companies, do not need to help us consider.” Mr Ren also told the Wall Street Journal earlier this month that he did not expect the US to remove Huawei from the “entity list” and that “they might as well put us on the list forever because we wouldn’t have a problem without the US”.
“Huawei is not a victim of a trade war,” the Financial Times commented, despite the intermittent hostility of the Trump administration, Huawei’s revenue data showed that the technological cold war had not hampered the company, and that hostility from the United States had helped to bolster domestic support for China. China Mobile is said to have given Huawei about half of its orders for 5G equipment, and That China’s self-sufficiency in technology could accelerate rather than be hampered by trade frictions. “As Nietzsche says, but anyone who can’t kill you will eventually make you stronger.”