May 20th, 2019

The US Commerce Department issued a ban on Huawei dealing with US companies last week, and it’s now temporarily going back on the ban. The company is getting a 90-day reprieve where it’s allowed to deal with US companies and purchase US goods, but only to maintain existing products like network equipment as well as provide software updates to its devices. This will not allow them to use US goods to build new products.

It was widely reported that Google has rescinded Huawei’s access to the Play Store and other Google services due to this ban, but that’s really not the worst of it. Huawei won’t be able to purchase any US goods without a license for building new products, which includes products from Intel, Broadcom, and more. These are companies that Huawei relies on, like using Intel processors for its laptop line.

The 90 day roll back may be due to the government realizing how big of a move the ban was. While it will hurt Huawei, it will likely hurt US companies even more. Google may have it worst, losing out to all the Google Services users using devices from the world’s second biggest smartphone manufacturer. Not only that, but it also pushes Chinese companies to just create their own alternatives, giving US companies less business. And of course, it looks bad for US companies to do business with foreign companies then suddenly cut them off.

Hopefully, this 90-day rollback is a sign that the government is reconsidering the ban and its wide-reaching consequences. We’re sure there is a better way of going about this without hurting both US companies and consumers worldwide.

Source: Reuters

local_offer    ban   Government   Huawei   US Commerce Department