Huawei: marginalization is growing in the United States

Supply Huawei, soon to be completely prohibited for American companies? Washington is preparing to formalize rules in this direction.

Huawei, soon to be completely marginalized in the United States? For a few weeks, the Chinese group can no longer sell, on site, its telecom equipment, without exception.

At the same time, it is no longer possible for it to obtain supplies from American companies… unless the latter are granted a license by the Government.

The latter has indeed granted, as much under the Trump era as under the Biden administration. Over the period from April to November 2021, they would have represented, for the suppliers concerned, a windfall of more than $60 billion. Qualcomm was on the 4G chips.

These exceptions have facilitated the refocusing of Huawei’s activities on the business market – the consumer segment being weighed down in particular by restrictions on the use of Android. Over time, however, they have become rarer, without the United States establishing any formal policy.

The situation could evolve shortly. The Department of Commerce would have in this case, in its boxes, rules that would completely close the floodgates for Huawei.

In the background, an agreement that the USA reached last week with Japan and the Netherlands. The principle: to restrict the capacity, for companies of these two countries, to export to China certain equipment intended to manufacture semiconductors. Similar restrictions have applied since last October to American companies.

Photo d’illustration © Huawei

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