Huawei criticises latest US trade restrictions

Huawei has accused the United States of damaging the global technology industry and targeting individual companies after it extended trading restrictions placed on the Chinese firm.

Last week the US government confirmed it was extending a trade ban on Huawei for another year, keeping it on the Entity list which prevents it from trading with US companies.

A temporary general license which had allowed firms such as Google to continue allowing its Android operating system to work on Huawei phones released before the ban also appears to be being wound down by the US government, who said a 90-day extension issued on Friday is expected to be the final renewal.

The US also announced a tightening of rules around Huawei’s ability to buy semiconductors from firms which use US technology in their manufacturing.

In response, Huawei labelled the latest decisions “arbitrary and pernicious” and suggested the US will cause damage to the global technology industry by undermining trust and collaboration in the sector.

“Huawei categorically opposes the amendments made by the US Department of Commerce to its foreign direct product rule that target Huawei specifically,” the Chinese firm said in a statement read during its annual Analyst Summit.

“In its relentless pursuit to tighten its stranglehold on our company, the US government has decided to proceed and completely ignore the concerns of many companies and industry associations.

“This decision was arbitrary and pernicious, and threatens to undermine the entire industry worldwide.

“This new rule will impact the expansion, maintenance, and continuous operations of networks worth hundreds of billions of dollars that we have rolled out in more than 170 countries.”

Huawei said the US had intentionally chosen to “attack a leading company from another country” and “goes against the US government’s claim that it is motivated by network security”.

Scrutiny of Huawei in the US and elsewhere has been driven by the suggestion that the company has close ties with the Chinese government and as a result, its telecoms equipment and other devices could be used for spying and therefore represent a security risk.

Huawei and its senior executives have strongly and repeatedly denied the allegations.

The tech giant’s latest response said the US decision would harm other companies, as well as trust in American businesses in the long term.

“This decision by the US government does not just affect Huawei. It will have a serious impact on a wide number of global industries,” the company said.

“In the long run, this will damage the trust and collaboration within the global semiconductor industry which many industries depend on, increasing conflict and loss within these industries.

“The US is leveraging its own technological strengths to crush companies outside its own borders. This will only serve to undermine the trust international companies place in US technology and supply chains. Ultimately, this will harm US interests.”

The Chinese firm admitted that “inevitably” its business would be affected, but added that it was trying to find a solution to the latest restrictions.