Yesterday, the US Department of Commerce announced on its official website that Huawei Technologies Co., Ltd. and its subsidiaries were included in the “list of entities”. This means that Huawei’s purchase of products and technologies from US companies requires US government approval. Well, it is most likely that the purpose of the US government is to suppress or even block Huawei, thus the possibility of getting approval is very low.
The Chinese manufacturing giant has sent an e-mail to its employees on the US inclusion of Huawei in the “list of entities.” The e-mail said that Huawei’s inclusion in the so-called “physical list” is the latest step by the US government to suppress the company because of political purposes. The email encourages Huawei employees to “do their jobs and continue to work hard. Any hardships and difficulties can’t stop us from moving forward.” In addition, Huawei’s founder, Ren Zhengfei, responded to the inclusion of the company in the “list of entities”.
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“If the United States says it will no longer supply parts to Huawei, the damage is on American companies, because we are the third largest chip company in the world, and the United States will lose so many orders, the financial statements of many companies in the United States will go down and there will be big fluctuations in the stock market. Without them, we also have the ability to substitute production, so from this point of view, we have no survival crisis. “
Judging from Ren Zhengfei’s statement, even if Huawei is sanctioned, there will be no survival crisis. Instead, it will prohibit Huawei from purchasing American companies’ products and causing losses to US companies. According to a report released by Gartner earlier this year, Huawei ‘s semiconductor procurement expenditure reached $ 21.131 billion in 2018, a 45% year-on-year increase. It surpassed Dell and Lenovo and became third with Samsung and Apple occupying the top two spots. Among Huawei’s chip suppliers, US companies are undoubtedly the most, Intel, Qualcomm, Marvell, TI, Nisshin, Skyworks, etc. Last year, Huawei announced 33 of the 92 core suppliers are from the United States. Huawei has just been added to the “list of controlled entities” but a ban has not yet taken effect. The US Department of Commerce has to formulate a specific implementation plan in 150 days, which means that Huawei still has 150 days to do some “free” business.