Trump Government withdraws, suspends sanctions on Huawei for 90 days – Business



After the storm caused by last week's sanctions, the US now seems to be taking a more moderate stance and has suspended a three-month ban on Huawei, which will then be able to use US hardware and software before the sanctions are effectively enforced. the Chinese group.

This 90-day transitional period, which can be leveraged by Huawei and its trading partners to adapt, but interestingly was precisely the period the company had set in its contingency plans to resolve the dispute. The maker had already made acquisitions of components and materials needed to face a three-month trade war with the US, as confirmed yesterday.

"This temporary general authorization gives the industry time to reorganize and the Department of Commerce the possibility of determining appropriate long-term measures for US and foreign telecommunications companies that now use Huawei equipment for some essential services, "Commerce Secretary Wilbur Ross said in a statement.

One of the most visible impacts of the Trump executive's blocking decision is on Huawei, given its position in the smartphone market worldwide. With the sanctions Google will no longer be able to provide the Android operating system to Chinese brands, affecting mainly the brand that is number 2 worldwide.

Google, whose Android system manages the vast majority of smartphones in the world, announced on Sunday that it would cut connections with Huawei, which would have prevented the Chinese group from accessing some services of Android and its applications Gmail or Google Maps.

In addition to smartphones, Huawei is also one of the leading telecommunication infrastructure companies, and this is one of the areas targeted by the sanctions. But those responsible for Huawei have already ensured that the company is prepared and will not back down in the development of 5G.

"Huawei's 5G will not be affected," Ren Zhengfei said in an interview with Chinese state-owned CCTV station, adding that "within two or three years" other companies will be able to compete with the Chinese giant for the fifth mobile generation. "The American political team, by the current way of doing things, shows that it underestimates our strength."

It is recalled that Huawei is accused by the US of spying for the benefit of Beijing, which would have largely contributed to its international rise. Washington had already banned its military from using Huawei equipment, which strongly denies any espionage.

Washington fears the group is a "Trojan horse" from China, due in particular to its boss's military past. And in particular, a law, passed in 2017, which obliges large Chinese companies to cooperate with the country's intelligence services.



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