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US sanctions against Huawei might be lifted afterall

“US stakeholders need to be fully engaged in international standards organizations, particularly where the critical but sometimes invisible standards that they set have important national security as well as commercial implications”

by Kerem Gülen
13 September 2022
in Corporate, Business
Reading Time: 3 mins read
US sanctions against Huawei might be lifted afterall
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  • Since the 2019 sanctions, Huawei is no longer able to work with US companies.
  • As a result of what Bloomberg reported, the US government has relaxed restrictions on technology cooperation with companies on the “black list.”
  • The US government wants to stop Chinese-developed cutting-edge technologies from outpacing those produced in the US.
  • Nevertheless, Washington is concerned that China’s government and largest enterprises are participating more in technical committees that determine how technology is developed and utilized globally, potentially providing corporations that the US views to have national security issues an advantage.

The US embargo from 2019 is still causing Huawei problems today. Since that time, the Chinese firm has lost the ability to collaborate with US businesses. Additionally, this indicates that there are no longer any Google apps on the devices.

Could Google apps and 5G soon be available on Huawei smartphones? In the United States, hope for this shift is now deciding. The U.S. government has loosened limitations on technology cooperation with corporations on the “black list” as a result of what Bloomberg reported.

US embargo hit Huawei hard since 2019

2019 saw the blacklisting of Huawei and other Chinese firms by former US President Donald Trump. Since that time, US businesses are not permitted to do business with them. This also meant that Huawei lost its permission to use Google apps as well as its licensing for 5G at the moment. The Chinese corporation has so changed its positioning in the three years after the embargo.

Ever since, it has solely provided 5G for gadgets within of its own nation. Furthermore, Huawei continues to employ an Android-based operating system (HarmonyOS) for its smartphones and tablets, replacing the widely used Google apps in Europe with what are known as Huawei Mobile Services, or HMS for short. In its own app store, Huawei provides these as substitutes for Google Maps, Chrome, and other services.

However, few consumers in Germany are switching to smartphones or tablets, so sales numbers are still weak. Because few users are prepared to forgo 5G and popular Google applications for devices that cost about 1000 euros. Therefore, a decision to loosen regulations in the US could be the company’s savior. Will Google apps, however, actually return to Huawei devices?

US sanctions against Huawei might be lifted afterall
2019 saw the blacklisting of Huawei and other Chinese firms by former US President Donald Trump

According to Bloomberg, the US Department of Commerce on Thursday adopted a regulation that permits the distribution of specific technology and software, provided that the companies concerned can agree on sufficient standards. Even specifically identified as a firm is Huawei. One must keep in mind that the creation of technology standards is mostly a process of interchange. Through its 2019 embargo, the USA prevented this on their own. Bloomberg reported that U.S. corporations’ involvement in the creation of new standards has been reduced at a time when Chinese companies have increased their efforts once more.

The US government seeks to prevent Chinese-developed breakthrough technologies from surpassing American ones. Most notably those that the US views to be a danger to national security. Therefore, you need a controlling body that can step in and enforce the established security requirements as necessary. It would be a give-and-take situation where the US would further open up its market to Chinese businesses in exchange.

Washington is nonetheless concerned that China’s government and biggest businesses are becoming more involved in technical committees that decide how technology is created and used globally, potentially giving corporations that the US considers national security concerns an advantage.

“US stakeholders need to be fully engaged in international standards organizations, particularly where the critical but sometimes invisible standards that they set have important national security as well as commercial implications,” Alan Estevez, the Commerce undersecretary for industry and security, said in the statement, according to Bloomberg.

US sanctions against Huawei might be lifted afterall
It is yet unknown, though, which software and technologies are impacted by the relaxation and whether Huawei will agree to the adjustment

Huawei has consistently denied posing a security threat to the US or other western countries. Nevertheless, the nation has frequently been accused of using technology for espionage. The fronts are therefore made harder. However, Huawei would have a genuine chance to reclaim its position in the European market if the blacklist was opened.

It is yet unknown, though, which software and technologies are impacted by the relaxation and whether Huawei will agree to the adjustment. After all, the HMS and our own interface were both developed over the course of three years. Even if returning to Google would undoubtedly improve sales once more, it is possible that you will not want to do so at all.

Tags: featuredhuaweisanctionstrumpUS

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