The ongoing trade war between the US and China isn’t hidden from anyone. It’s a battle for economic supremacy. America has recently banned the Chinese company Huawei to operate in the U.S. This has caused great distress in the Chinese top leadership.
For now, Huawei has ordered its company representatives in China to cancel any kind of contacts with the U.S. counterparts. The main reason for this is the rising tension between the U.S. and China. The company has also sent many Americans back to their country, who were doing research in Shenzhen headquarters.
How it all started:
It all started when the American President Donald Trump issued an order on 15 May, which declared a national emergency. This order states that all the foreign companies, which provide technology services, should be banned because they are a risk to national security.
This order hasn’t named any specific countries or companies, which will be banned. However, it came after the pressure of the U.S. on Huawei. This order shows that America considers China as a threat to U.S. technology.
The officials at Huawei considered this decision foolish. The company also released an official statement in which it said, “If the U.S. totally bans Huawei, it won’t make the U.S. economically, strong. Instead, it will weaken the country. They will have to lower the quality of their products and use inferior quality material. Thus, they won’t be able to compete with other countries in technology.” The Company also said that it was willing to make a deal with the U.S. to tackle this issue.
Donald Trump’s order calls upon the International Economic Powers Act. This gives the President the authority to tell the commerce department to enforce emergency. The commerce department will, then, sort out a plan and enforce it within 150 days. The commerce department issued a statement, which said that they were banning Huawei and its 70 affiliates from the U.S.
Limiting communications:
Due to all this background, Huawei has limited the contacts between the Chinese and U.S. staff. Huawei has made this move, as it does not agree with the difficult laws of the U.S. It doesn’t seem that the two countries will reach a point of agreement in the near future.
Huawei has also instructed its staff to control discussions with overseas visitors. They shouldn’t talk about technology topics, at any cost. The Company does this because they want to obey the law, fully.
It isn’t yet clear how controlling exports could lead to internal disruption of the company. Huawei could use this as a bargain and show the U.S. that their policies are hurting their own citizens.
After the ban on Huawei from the commerce department, the company is suffering. Different companies, like Google and Microsoft, have made major changes in their deals with Huawei.
Recently, many Huawei executives and Chinese officials have spoken about the impact of this ban on U.S. businesses. A representative for China’s Commerce Ministry said, “China has emphasized several times that the concept of nationalism shouldn’t be used wrongly, and that’s what the U.S. is doing. It is using the concept of nationalism for protectionism.”
Huawei has decided to fight back against the U.S. ban. The company has recently filed a motion, which states that this ban is wrong and unconstitutional. Huawei is fighting to save its company because most of the business and revenue of the Company comes from foreign countries, particularly the U.S.
Things don’t look good for Huawei. However, the U.S. has given a slight relief to the Company. The U.S. government has given Huawei a temporary license for 90 days. During this period, it can get help from companies like Google and Microsoft.
