Huawei is on a trade blacklist after the U.S. Department of Commerce added the Chinese technologies firm and 68 affiliates in over two dozen countries on the Entity List.
The move, which saw restrictions enacted immediately, bans Huawei Technologies Co Ltd from buying components and parts from American firms, without the approval of the U.S. government.
This will make it difficult for the telco giant to trade with U.S. companies, as getting such approval from the American government will not be easy.
The U.S. government, under a “policy of presumption of denial” will review license applications. But, the order won’t be published formally in the Federal Register until Tuesday, according to a Commerce Department spokesman.
The world’s largest maker of telecommunications equipment didn’t give a comment immediately when requested for one. But this is sure to be a difficult moment for the company and its customers.
This action comes even as Huawei is set to launch its MateBook X Pro. However, with the world’s two largest economies tied up in an escalating trade war, the launch hangs in the balance.
When will Huawei Launch MateBook X Pro in 2019?
It is unclear whether this issue will affect the company’s latest MateBooks. Huawei hasn’t commented on whether or not it will impact the MateBook X Pro and MateBook 14 devices’ availability.
Similarly, there’s uncertainty and no clarity as to what the U.S. government’s move will mean to the launch as Huawei hasn’t announced the US availability of the latest pair of laptops..
However, Huawei, in a rebuff, says the move is against the decision of the Bureau of Industry and Security (BIS) and the US Department of Commerce. The statement, from a Huawei spokesperson, says the “decision is in no one’s interest”. Furthermore, “it’ll only do more economic harm to American companies with which it does business.”
Huawei will however seek immediate remedies to resolve the matter, and endeavor to mitigate the impacts of the U.S. government’s move.
The Trump administration gave an executive order that seeks to protect US infrastructure from “foreign adversaries”. It also gives the commerce secretary authority to block transactions with tech firms labeled as being controlled by such entities. This is to prevent potential threats or espionage critical to American infrastructure.
For now, we wait and see how much impact this move will have overall on the tech space.
Elsie is a tech writer with 8+ years professional experience. For Tech News Watch, she brings rich experience contributing to topics such as Windows, MacOS, Android, and iOS among others. In her spare time, she loves checking out the latest tech trends, gadgets, and news, listening to music and cars.
Leave a Reply