Huawei will be officially banned from the United States from August 13, 2019, reveals the US government. Several months after the Trump decree, Washington formalized the rules against the Chinese manufacturer. Despite the easing announced at the G20, the manufacturer will no longer be allowed to enter into contracts with US public markets. The government ensures that exemptions can be granted.
Yesterday, August 7, 2019, the US government officially unveiled the measures that will regulate the trade between the Chinese companies, including Huawei, ZTE, Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company and Dahua Technology Company, and the US federal agencies. These measures, already mentioned in Donald Trump’s National Defense Authorization Act (NDAA), will, therefore, come into effect.
Huawei: US government specifies bans on Chinese group
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Beginning on August 13, NDAA-listed firms will no longer be allowed to supply equipment to a US federal agency. Derogations may be granted under specific conditions. These exceptions will be valid for a maximum of two years and are linked to the goodwill of the head of a federal agency or the director of national intelligence services. In any case, the exceptions may be rather rare. “The Commerce Department will issue licenses when there is no threat to US national security”. Said Wilbur Ross, the Trump government’s trade secretary. He even speaks of a “presumption of refusal”. So Huawei should expect that the Commerce Department will reject the most, if not all, exception requests.
“In the end, it is the inhabitants of the rural areas of the United States who will be the most affected, because the networks they use for the digital connection are based on Huawei,” Huawei said in a statement relayed by AFP. The Chinese group believes that the US government has put in place “a trade barrier based on the country of origin that invokes punitive measures without having proof of infringement”. As a result, Huawei will “challenge the constitutionality of the ban in a federal court”. Shortly after Trump Decree, Huawei’s lawyers filed an appeal against the restrictions imposed. For the moment, the procedure is going on.
SMARTPHONE SALES IMPROVED BY 30% DESPITE US RESTRICTIONS
It is worth to mention that after passing the milestone of 200 million smartphones sold in 2018. Huawei recorded a growth of its sales of 30% in the first half of 2019, which is better than expected.
This would bring the volume to 270 million units in 2019. Huawei has already passed the milestone of 100 million smartphones sold at the end of May. And it could still achieve this goal-driven by end-of-year sales and perhaps an upcoming easing of US sanctions.
The 30% increase in sales despite Donald Trump’s decree was mentioned by Ren Zhengfei. The founder and CEO of Huawei in an interview with Yahoo Finance.