Huawei Chairman Guo Ping says that the tech giant is on “Survival Mode” following further restrictions by the US Commerce department. On Friday the 14th of May 2020, the US Commerce Department made the decision to bar Huawei from purchase and us of all US software and technology including access to the semiconductor technology used by the tech giant in their devices after a 120 day grace period.
Huawei is poised to become a key player in the tech industry with the advent of 5G with many European states relying on Huawei for their patented state of the art telecommunication devices. But according to the Trump administration, Huawei is using the global trade supplies to steal US technologies and is granting a back door access to Beijing to spy on the west. Though no proof of any such saboteur has been produced so far, the trump Administration has engaged in a trade war with China over the accusations.
Up until now, Huawei has been circumventing the trade restrictions by the US by purchasing the needed chips and technologies from American factories based in other countries. But with this restriction Huawei will be forced to move ahead with their research of “home-grown semiconductors” which up until now lagged far behind in terms of feasibility and functionality compared to those by the US and their allied South Korean and Japanese chips.
Though the restriction bars Huawei from directly purchasing components from US firms, it actually only restricts free purchase. A senior state department official later said that this restriction would require Huawei to obtain a License which would allow Washington to keep track on Huawei’s technologies.
Chairman of Huawei Guo Ping says that the accusations by Washington is fueled by fear of US falling behind technologically. “Any other country or company with more advanced technologies may put US supremacy at risk” said Guo Ping at a conference.