China's defence minister said Sunday that Huawei was "not a military company" despite its founder Ren Zhengfei's previous career in the People's Liberation Army. He added that this may consist of a couple of other components, including limitations in shipments of minerals that are vital for use in the numerous USA made devices and electronic cars. The revision is to reflect "an uncertain future" resulted from the escalating trade war between the U.S. and China.
Trump's move followed years of allegations that Huawei is linked to the Chinese government.
MICRON TECHNOLOGY INC: Chief Financial Officer David Zinsner said on May 23 the chipmaker, which earned 13% of its revenue in the first and second quarter from Huawei, was restricted from exporting additional product to the Chinese company.
The Trump administration is seeking to choke off Beijing's access to key technologies by limiting the sale of vital US components to Huawei, claiming the equipment could enable China to spy on its users.
"Huawei is a tool of the Chinese state and has close ties with the intelligence services", said Jim Lewis, a cybersecurity expert at the Center for Strategic and International Studies. The Chinese tech giant also asked for an end to US' state-sanctioned campaign against it arguing that it would "not deliver cybersecurity".
In France, sales of premium Huawei smartphones fell by about one-fifth in the week after the U.S. blacklisted the company, according to a telecom industry representative who asked not to be identified as the figures are private.
The Chinese government's move to announce its own blacklist is causing concerns among global ICT companies as a lot of them have ties with Chinese companies in terms of technology development, parts supply, and sales.
Huawei's telecoms equipment has been banned in the U.S ever since 2012, but the new trade ban takes things even further.
The U.S. government has been trying, albeit unsuccessfully, to convince their European counterparts to give up business with Huawei.
Huawei is fighting back with the U.S. by introducing their new Operating System Hongmeng which is 60 times faster than Android.
The ban on USA tech companies doing business with Huawei is expected to drastically curtail demand for Huawei phones in the future. Plus, Huawei has been improving its personal OS in recent years.
President Trump is set to have a wide-ranging discussion with May on June 4, which senior administration officials expect will include Huawei.