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HUAWEI slams 'pernicious' new US measures

HUAWEI has finally broken its silence on US curbs, while admitting that the new measures will impact its business.

Published onMay 18, 2020

HUAWEI logo P40 Pro

In the wake of rising US-China tensions and losing access to its major chip supplier TSMC, HUAWEI has finally broken its silence. The company has lashed out against the US government, calling its recent actions “arbitrary and pernicious.”

At its ongoing annual analyst summit (via The Verge), HUAWEI’s Rotating Chairman Guo Ping asked, “The US government still persists in attacking HUAWEI, but what will that bring to the world?

“In its relentless pursuit to tighten its stranglehold on our company, the US government has decided to proceed and completely ignore the concerns of many companies and industry associations. This decision was arbitrary and pernicious, and threatens to undermine the entire industry worldwide,” Ping was quoted as saying.

HUAWEI says the new measures will impact network operations in most countries around the world.

“This new rule will impact the expansion, maintenance, and continuous operations of networks worth hundreds of billions of dollars that we have rolled out in more than 170 countries.”

HUAWEI is referring to the US government’s recent move to block its access to global chip suppliers, including TSMC, its main chipset vendor. The supply chain disruption followed another jolt that the Trump administration delivered to HUAWEI earlier in the week: a year long extension of its ongoing US ban.

Huawei’s official statement continues to add: “We expect that our business will inevitably be affected. We will try all we can to seek a solution.”

Bad business overall

Meanwhile, China has reportedly threatened action against US firms on its home soil. The country is apparently planning to impose restrictions or launch investigations into the local operations of Apple and Qualcomm, thereby potentially damaging their business and further hurting US-China trade ties.

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Even though HUAWEI is rumored to be exploring other chip partners like Samsung and China’s own SMIC, the company projects a very grim future for the global chip industry if the US continues to meddle in its business.

“In the long run, this will damage the trust and collaboration within the global semiconductor industry which many industries depend on, increasing conflict and loss within these industries. The US is leveraging its own technological strengths to crush companies outside its own borders. Ultimately, this will harm US interests,” the firm says.

What do you think of America’s recent actions against HUAWEI? Do you feel the Chinese company deserves these strict sanctions? Take our poll below and let us know your thoughts.

Do you think this latest measure against HUAWEI is a step too far?

2214 votes