Huawei suggests US sanctions are no big deal, as its 'core technologies' remain intact

Huawei suggests US sanctions are no big deal, as its 'core technologies' remain intact
Huawei has been in the news for the last few days like never before, but unfortunately for the Chinese tech behemoth, the latest headlines are not directly related to the company's booming global smartphone sales or dominant mobile networking equipment business. Instead, everyone's talking about the possible impact of a US ban that was temporarily lifted shortly after being implemented and receiving support from key chip suppliers.

Interestingly, Huawei founder and CEO Ren Zhengfei was quick to downplay the importance of President Trump's seemingly generous "stay of execution" in a short interview with Chinese state-owned newspaper Global Times. This is the second time since the long-gestating conflict between the US administration and Huawei escalated that the company's reclusive head honcho talked to the press, sending a similar message of strength in the face of foreign adversity.

Basically, what Ren appears to be suggesting today is that Huawei didn't really need a 90-day "general license" to continue collaborating with US companies like Qualcomm and Intel, having obviously developed a contingency plan dealing with a ban that was floating around for quite some time. It's not entirely clear what measures were taken and how long they could have kept operations going as usual, but Ren remains confident US sanctions will not hurt Huawei's "core technologies" and "core business."

Nonetheless, the world's second-largest smartphone vendor still definitely "needs US-developed chipsets", looking to keep on working with various American partners which have "contributed a lot to Huawei's development and showed their conscientiousness on the matter." In fact, Ren claims a number of US companies "have been making efforts to persuade the US government to let them cooperate with Huawei."

That may include Google, which probably doesn't want competition from such a popular mobile hardware manufacturer in the software arena, and various chipmakers that know Huawei could well become self-reliant in that department relatively soon if the situation calls for such a move. At the same time, it's pretty obvious Ren Zhengfei is putting a brave face on a very delicate state of affairs that might end up costing his company dearly.

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10 Comments

2. Zomer

Posts: 361; Member since: May 31, 2013

They sound delusional.

3. ijuanp03

Posts: 507; Member since: Dec 30, 2014

And arrogant to say the least. I pitied them but not anymore.

6. drunkenjay

Posts: 1647; Member since: Feb 11, 2013

this will ruin huawei phones.

7. Zylam

Posts: 1808; Member since: Oct 20, 2010

This is a massive moment in history for Google, Android. China, the US, Huawei and all the other non American OEM's. I have lost a ton of respect for Google and for the first time in years I am considering going back to iOS. If this is how they abuse power and cripple foreign companies because they are ahead in network technology, then yeah, I feel disgusted. The OEM's are what made Android what it is today, and this is how they get repaid? No other country has any problem with Huawei and see no threat of any kind. The US haven't been able to provide any kind of proof of spying either so why would they take such aggressive action? Can't wait to hear how Sundar spins this. And what about all the other Chinese OEM's? Are their days numbered too?

8. ph00ny

Posts: 2002; Member since: May 26, 2011

How is this google faults? They don't have much say in this other than to comply If other chinese brands get linked to chinese government, i'm sure they will get tied up in the future just like ZTE was pushed around prior to huawei

9. Back_from_beyond

Posts: 1239; Member since: Sep 04, 2015

Considering Google is a US based company, they had no other option but to comply or face serious legal problems themselves. You can bet their legal team worked overtime trying to find any way out of it and Google didn't make that decision lightly.

10. TBomb

Posts: 1205; Member since: Dec 28, 2012

I'd be willing to make a SMALL bet that it's going to be temporary (at least the Google services piece - can't speak to the hardware pieces). If Google is really spying for the government as much as the world think it is, the US wants Google in as many devices in China as possible.

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