US ban on Huawei backfires at US tech companies
Huawei remains in the limelight after being blacklisted in the United States. However, this time the reasons are opposite. Usually, the impacts that these measures will have on the Chinese company are mentioned, but this time the highlight is the impact on the various American companies that are being affected by the ban.
Some of Huawei’s top hardware vendors are apparently trying to put pressure on the US government to reconsider its actions on the maker. Some of the main ones involved are Qualcomm, Intel and Xilinx Inc, being the most important suppliers of components.
Pressures on the government have lasted since the end of May
It is not yet possible to know what will be the weight of these requests in future decisions of the government of Donald Trump. Still, according to Reuters sources, corporate-government meetings have been running since the end of May.
While US companies do not deny the potential security risk in Huawei’s implementation of 5G networks. They affirm that the components they manufacture do not hold any risk and hence it should be allowed to export those components to Huawei.
Although it may sound like a ‘help’ to Huawei, US companies have been keen to point out that they are not interested in helping Huawei. The main purpose of these investments is to prevent US companies from being seriously affected by these government actions.
Although the news over the last few weeks has focused on the Chinese manufacturer, the truth is that Qualcomm and Intel will also be seriously affected by this ‘war’.
According to the Reuters report, in 2018 Huawei spent almost € 10 billion on purchases from US companies. Therefore, its blacklisting in the United States will result in a great loss to US companies.