Huawei has been subject to US sanctions since 2019. Then-US President Donald Trump accused Huawei of having ties to the Chinese Communist Party and the Chinese military. As a result, Huawei was added to the US Commerce Department’s Entity List. As a consequence, Huawei is prohibited from doing business with any American company. However, news has reached us that the US is finally planning to lift the ban on Huawei and resume doing business with them.
How Will The New US Standard Benefit Huawei?
As per the news, the US government has revised plans to transfer US-related technologies to companies that face restrictions. Among these companies is Huawei. According to Bloomberg, the US Commerce Department is developing new standards that will allow even the most restricted companies access to US-made technologies.
As you are aware, the use of US-made technology is always subject to terms and conditions. That is where the so-called “standards” come into play. Based on the standards, all companies must fully engage the US Commerce Department in International Standards. Particularly where the essential but sometimes invisible standards they set have a significant impact on national security. As well as commercial implications. Alan Estevez, the Commerce Undersecretary for Industry and Security, made the following statement.
What Impact Has The US Ban Had On Huawei?
The US restrictions have had a massive effect on Huawei’s operations and production. In such a way that they can no longer compete for first place in their own country. This is due to a lack of access to core US technologies or technologies that rely on US components in their productions.
Despite this, Huawei continues to manufacture smartphones and other consumer electronics. HarmonyOS, their in-house multi-platform operating system, is also performing well.
Given how well Huawei is still performing in all of these atrocities, there is no doubt that they can easily return to their former glory if the new US standards favour them.