Following the ban on Huawei by the US government, it means that the company will no longer be able to buy or do business with US companies. While this will no doubt have a huge impact on Huawei, it seems that there will also be a huge impact on US companies that Huawei used to do business with.
According to a report from Reuters, it has been estimated that the decision to blacklist Huawei could result in US companies losing as much as $11 billion in business, which is a staggering amount of money by a single company. Huawei is said to have spent an estimated $70 billion in 2018 buying components, $11 billion of which is from US-based companies such as Qualcomm, Intel, and Micro, just to name a few.
It is also not surprising that as a result, companies such as Qualcomm want to continue doing business with Huawei despite the ban. The report claims that Qualcomm wants to continue to be able to ship components to Huawei for “common” devices, such as phones and smartwatches.
According to Jimmy Goodrich, vice president of global policy at the Semiconductor Industry Association, “For technologies that do not relate to national security, it seems they shouldn’t fall within the scope of the order. And we have conveyed this perspective to government.” It should be noted that while blacklist does prevent Huawei from doing business with US companies and vice versa, there can be exceptions made with explicit permission, so it is possible (even though unlikely) that maybe certain products can still be traded.
Filed in . Read more about Huawei and Legal. Source: reuters