US Firms To Find Legal Ways Around Trump’s Export Ban On Huawei

According to secret sources, US technology firms have continued business with Huawei Technologies Co. Ltd although Trump’s government doesn’t allow them to do so.

The New York Times reports that Micron and Intel haven’t yet labeled their products as ‘American made’, and as such, these companies can keep providing them to the Chinese tech giant.

Huawei is the first company in the blacklist that includes many Chinese companies that aren’t allowed to trade with US firms if they don’t have a special license. Based on the US export restrictions, it can’t buy chips manufactured by American suppliers.

However, Trump’s government doesn’t only ban Huawei from purchasing made-in-US chips but it also prevents the tech company’s products from running the Android OS of Google.

The unknown sources revealed that the US chip makers have continued to ship their products to Huawei since 03 weeks ago. In other words, Huawei will be able to keep producing smartphones, as well as electronic devices.

It seems that Donald Trump has underestimated the reactions of US companies towards its ban.

According to Google executives, restricting Huawei to access to the Android OS can lead to a security risk. In addition, shockwaves from the export ban have been spreading across the tech industry.

One notable thing is that, until now, many of the US firms haven’t yet determined what kinds of products they can or can’t provide Huawei, as well as many other Chinese companies.

As a result, exports have been deeply affected while these companies were considering and assessing these new laws. According to Huawei, its revenue will decrease by 30 billion dollars within the following two years.

The US government now allows its tech companies to continue business with Chinese companies in the blacklist, including Huawei, until the middle of August 2019. However, these companies can’t still provide their products to Huawei’s future devices.

The percentage of Huawei’s current sales for future devices hasn’t been revealed; however, according to some secret sources, the figure may reach hundreds of millions of dollars.

Besides, the US government has detected its tech companies’ efforts in sneaking around the export ban, but it hasn’t given any specific response.

In terms of this situation, there are two streams of conflicting opinions: with the first opinion, many feel angry when these companies are against the government’s efforts to ban Huawei. For the second opinion, many express their support towards these companies’ efforts to keep working as an important customer of the Chinese company.

The President and CEO of the Semiconductor Industry Association (SIA) John Neuffer showed his disappointment with how the tech industry has been reacting with the export ban. He said on the SIA website: