Huawei has protested US’ move to put them on the Entity List last year, that bars them from trading with Us companies.
US companies who wish to export products and software to entities on the list must apply for a licence from the Bureau of Industry and Security, an agency under the US Department of Commerce, although the licence review policy is usually a “presumption of denial” – meaning that license applications are unlikely to be granted.
In a statement, Huawei says that the move which was made on May 16, 2019, was made without justification, and despite complying with most demands, the US has refused to lift the ban.
“This decision was arbitrary and pernicious, and threatens to undermine the entire industry worldwide. Since that time, and despite the fact that a number of key industrial and technological elements were made unavailable to us, we have remained committed to complying with all US government rules and regulations. At the same time, we have fulfilled our contractual obligations to customers and suppliers, and have survived and forged ahead against all odds,” reads the statement in part.
“Nevertheless, in its relentless pursuit to tighten its stranglehold on our company, the US government has decided to proceed and completely ignore the concerns of many companies and industry associations.”
Following the move, tech giant Google suspended business ties that requires the transfer of hardware, software and technical services except those publicly available via open source licensing.
This meant that Huawei devices that were produced after the ban would not get services and softwares produced by Google, which is a US company.
“This new rule will impact the expansion, maintenance, and continuous operations of networks worth hundreds of billions of dollars that we have rolled out in more than 170 countries.”
“It will also impact communications services for the more than 3 billion people who use Huawei products and services worldwide. To attack a leading company from another country, the US government has intentionally turned its back on the interests of Huawei’s customers and consumers. This goes against the US government’s claim that it is motivated by network security,” added the statement.
According to the Chinese company, the move will damage the trust and collaboration within the global semiconductor industry which many industries depend on, increasing conflict and loss within these industries.
“The US is leveraging its own technological strengths to crush companies outside its own borders. This will only serve to undermine the trust international companies place in US technology and supply chains. Ultimately, this will harm US interests,” it added.
Speaking during the company’s Annual General Meeting, Huawei’s Rotating Chairman Guo Ping said that Huawei will continue investing and innovating in three domains: connectivity, computing, and smart devices.
“In the past 30-plus years, Huawei has deployed over 1,500 networks in more than 170 countries and regions, serving over 3 billion people worldwide. We also provide smart devices to 600 million consumers. US actions against Huawei will not only harm Huawei, but also harm the experiences of customers and consumers that use Huawei’s products and services,” he said.
Future versions of Huawei devices that run on Android will lose access to popular services, including Google Play, Gmail and YouTube that most consumers now rely on.
Huawei will only be able to use the public version of Android and will not be able to get access to proprietary apps and services from Google.
China has been facing trade wars with US over data privacy.