US tech companies discover ways to resume business with Huawei despite the trade ban
The US ban on Huawei and 68 of its affiliate companies have been going on for over a month now. The US sanctions point out that tech equipment made in foreign countries can still be shipped to Huawei as long as they ‘don’t contain more than 25% US components or materials. But any technology equipment from the US ‘can’t be shipped to Huawei.
Despite the Chinese tech giant being the immediate loser in the trade wars, US-based companies are also losing some of their business. It’s no surprise Google has been on the forefront to try and convince the US government to ease the ban, a request that has been backed by other companies including Intel and Qualcomm. FedEx has been the only company that has publicly sued the US Commerce Department on the inclusion of Huawei in the so-called entity list.
Generally, the future of Huawei and the US is still unpredictable. It’s reported that the American companies were experiencing a halt in business by cutting ties with Huawei to comply with the sanctions.
To counter the issue while the trade ban is still ongoing, American Tech Companies have been reported to come up with a new way around the ban. As the WSJ reported, large tech companies have resumed some shipments to the blacklisted Chinese tech giant but still ensuring they don’t run afoul of American regulations.
Qualcomm, Intel and Micron the largest dealer in memory chips have stated they have resumed shipping some components to Huawei after examining it’s still in line with the sanctions set by the US Commerce Department. The only trick lies in a company determining which of their products are not restricted by the ban. Notably, Qualcomm is only shipping some radiofrequency components and not the broadband chips.
The Semiconductor Industry Association (SIA) on June 21 reported they talked with the US government and it’s clear “some items may be supplied to Huawei consistent with the Entity List and applicable regulations.”
Other US companies are also working on ways to continue supplying to Huawei with Flex Ltd a US-based being the primary beneficiary as it reportedly resumed 90% of its Huawei-related shipments.
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