Founder and CEO of Chinese smartphone brand Huawei, Ren Zhegfei, has done a number of interviews in the last week in which he has spoken about the US trade ban on his company. In an interview with Bloomberg, Zhengfei has said that he neither expects nor hopes for a retaliation from the Chinese government when it comes to the ban placed on Huawei placed by Trump’s administration. He said, “That will not happen, first of all. And second of all, if that happens, I’ll be the first to protest.”
Since the US government has imposed a ban on all companies in the country on doing business with Huawei, a number of technology websites have halted their dealings with the Chinese smartphone brand. These include Google, which has revoked the company’s license to use Android and its other services, Intel, Qualcomm, Broadcom, ARM and Microsoft. It should be noted that ARM is based in the UK, but it has stopped its business after the US trade ban with Huawei because of some of its processors are produced in the US.
We should mention that the American security agencies have called out the situation as a national security threat and it has urged people to not buy smartphones from Huawei. Allegations regarding intellectual property and trade secret theft have been levied on the Chinese smartphone brand and this has tarnished its reputation in spite of the fact that no material evidence of wrongdoing has been found yet.
President Trump recently said that the measures taken by him and his government are more of a trade negotiation move against China than a real security response to the smartphone brand.
In a situation like this, it may be right for Huawei to look for the Chinese government’s support. However, CEO Zhegfei has taken a very different approach to the matter. He has said that the company’s current situation is like managing an aircraft with a hole on its side, so it’s far from being great, but at least the plane is still up. The company will have to make appropriate adjustments too.
We should also add that it has been reported that the company has stockpiled components from each of these companies that will last them three months to a year. However, stockpiling is not a permanent solution and the company would have to think of a way to deal with this problem with a more long-term and effective solution if it wants to survive.
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