After the relaxation of the ban on Huawei by the US, the company can now do business with American companies. Huawei is now waiting for directives from the US Department of Commerce. Reports have it that it can purchase products and technology does not affect national security. Recent information suggests that despite the ban lift, Huawei will reduce its dependence on the US.
Huawei’s view of the US ban lift
This is the second time that the US will be relaxing a ban against the Chinese manufacturer. The relaxation of the ban is basically due to the opposition and dissatisfaction of US companies. Huawei’s annual revenues are in hundreds of billions of dollars. Of these, only $21 billion goes for chip purchases, of which US companies account for more than half. For many companies, Huawei is their important customer, and blocking Huawei will also affect the revenue of US companies.
It is precisely because of this that Huawei’s founder Ren Zhengfei’s view on the relaxation of sanctions remains the same. He said in an interview that “…the cancelation is fair…we did not any mistakes for them to punish us. The US just wants to destroy us…” Under such circumstances, even if the US loses the sanctions, Huawei’s goal of reducing dependence on the US supply chain will not change. Ren Zhengfei said in the interview that Huawei needs one or two years to adjust.
According to Ren Zhengfei, Huawei must work hard to solve its problems internally. This strongly suggests that the company will now turn to other alternatives now that it has the chance. Ren Zhengfei further said that even if sanction stands, Huawei will not lay off employees but will recruit more than 6,000 more. Its total number of employees will increase from 188,000 to 194,000 because it is necessary to increase the number of engineers.