‘Great challenges’: Huawei chairman says US sanctions are hurting

BEIJING, 24 September, 2020, (REUTERS): Chinese telecommunications giant Huawei Technologies says its supply chain is under attack from the United States and called on Washington to reconsider its trade restrictions which were hurting suppliers globally.

The world’s biggest maker of mobile telecommunications equipment and smartphones is under pressure from US trade curbs designed to choke off Huawei’s access to commercially available chips.

“The US has modified their sanctions for the third time and that has indeed brought great challenges to our production and operations,” Huawei Chairman Guo Ping told reporters in Shanghai.

Washington says Huawei is a vehicle for Chinese state espionage and from September 15 imposed new curbs barring US companies from supplying or servicing the firm. Huawei has repeatedly denied being a national security risk.

Guo said that although Huawei had sufficient chips for its business-to-business operations, including its 5G network enterprise, it was feeling the pinch of the US restrictions on its inventory of smartphone chips.

 

Intel has already received licences to supply certain products to Huawei, while China’s Semiconductor Manufacturing International Corporation, which uses US-origin machinery to produce chips for Huawei, has applied for a licence, the Reuters news agency has previously reported.

Huawei was willing to use Qualcomm chips in its smartphones should Qualcomm get a licence to sidestep the restrictions, Guo added. Qualcomm did not immediately respond to a request by Reuters for comment.

“We hope the US government can reconsider its policy and if the US government allows it we are still willing to buy products from US companies,” Guo said on the sidelines of the company’s annual Huawei Connect conference.

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