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US Urged By Huawei Chairman To Reconsider Restrictions Imposed On It

US Urged By Huawei Chairman To Reconsider Restrictions Imposed On It
While claiming that its supply chain was being targeted and attacked by the United States, the Chinese telecom equipment and smartphone maker Huawei on Wednesday also called on the US president Donald Trump’s administration to reconsider the trade restrictions that it had imposed on the firm which were crippling its global suppliers.
The restrictions and sanctions imposed on Huawei by the US are designed to prevent the Chinese firm from accessing commercially available chips.
"The US has modified their sanctions for the third time and that has indeed brought great challenges to our production and operations," Huawei Chairman Guo Ping told reporters in Shanghai.
The basis of imposing the restrictions on trading for American companies with Huawei was charges of the Trump administration that the company and its products were used for Chinese state espionage. The Trump administration implemented new curbs on the company from September 15 preventing all American companies from supplying or servicing the Chinese firm.;
All charges by the Trump administration that it is national security threat for the US have been repeatedly denied by Huawei.
The US restrictions are impacting the smartphone chip stocks of the company even though Huawei currently had enough chips for its business-to-business operations, including its 5G network enterprise, Guo said.
He added that he had information of US suppliers such as Qualcomm applying for US licences that would allow the companies to continue to do business with Huawei.
According to report already published, licences to supply certain products to Huawei have been granted by Washington to Intel and an application for a license has also been submitted by China's Semiconductor Manufacturing, which uses US-origin machinery to produce chips for Huawei.
Guo added if Qualcomm get a licence to avoid the US restrictions, Huawei would be willing to use Qualcomm chips in its smartphones.
No comment from Qualcomm on the issue was available.
"We hope the US government can reconsider its policy and if the US government allows it we are still willing to buy products from US companies," Guo said on the sidelines of its annual Huawei Connect conference.
Manufacturing of its most advanced chips under its Kirin line which power its high-end phones would be stopped from September 15, Huawei had said previously. According to analysts, the current stock of chips with Huawei should run out next year.
Even amid concerns that Huawei’s  mobile division is about to fold, consumers have rushed to buy smartphones of the company. Prices have spiked by as much as CNY 500 for some devices, said vendors.
There have little signaling from Washington about any willingness to turn off its heat against Huawei at a time when the bilateral relations between the United States and China are at their worst in decades.

Christopher J. Mitchell

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