Daily Management Review

US Blacklisting Forces Huawei To Stop Smartphone Production: Reports, Huawei Denies Claims


US Blacklisting Forces Huawei To Stop Smartphone Production: Reports, Huawei Denies Claims
Production of its smartphones is being stopped by China’s tech giant Huawei following the blacklisting of the company by the United States Commerce Department last month according to media reports quoting sources.
But such claims by the media have been denied by the second largest maker of smartphones of the world and Huawei has claimed that its business is going on as usual.
According to reports published in the South China Morning Post (SCMP) and Forbes, the current ban against it by the US and the attempts of America to cut off the company from the global supply chain has forced Huawei Technologies to re-evaluate its target to become the most dominant players in the global smartphone market and surpassing Samsung to become the largest seller of smartphones in the world by 2020.
Huawei has been forced to reconsider its smartphone ambitions because the US ban has taken away its access to the American market as well as stops US companies from dealing with the Chinese firm in terms of products as well as technologies.
Huawei is also the largest manufacturer in the world of telecom equipment and is a forerunner in the latest 5G based technology for mobile connectivity.
The trade war between the US and China has seen their bilateral relations being at historical lows in recent times. This situation has been compounded by the US sanctions on Huawei and the tensions between the two countries over the claims and activities of China in the South China Sea. China is also miffed at the US support for Taiwan which China claims to be its territory.
“As the new situation has emerged, it is too early to say whether we are able to achieve the goal”, Zhao Ming, president of Honor, one of Huawei’s smartphone brands, told the media last Frida when questioned about its plans to surpass Samsung Electronics to become the largest smartphone seller of the world.
According to “senior executive” quoted in a report in the South China Morning Post, the banning of Huawie by the US has cropped up serious issues about the access to services for the company which is critical for global sales.
There have been a number of American companies that have reportedly told employees not to supply Huawei until further notice and those includes names such as Intel and Qualcomm, following the blacklisting of Huawei and its 70 affiliate companies across the world by the US government which prevents all American companies from selling services and parts to the Chinese firm without government permission.
Huawei has also been prevented from gaining access to its future Android operating systems updates by Google.
Te news reports further added that Foxconn – the Taiwanese electronics manufacturer and primary assembler of Apple smartphones and other brands, has reportedly “stopped several production lines for Huawei phones in recent days”. The report further quoted sources as saying that Huawei has “reduced orders for new phones”.
Forbes added that “there has been lots of speculation outside China as to the impact on new phone sales and prices… since the US blacklisting was announced. Most reports have suggested that sales are down.”