The economic war that Trump started against China through Huawei seems to have no end. However, although the company has managed to survive by selling its sub-brands, looking for alternatives inside and outside the umbrella of large companies such as Qualcomm or Google, and relying on other of its products and services outside the smartphone market, it seems that he will soon receive a new and harsher blow.
And it is that the Biden administration has just imposed an even bigger limitation to Huawei, ZTE and other companies they have listed as “suspicious and potentially dangerous to the security” of their country, which will practically keep them out of the country entirely.
Until now, these companies were prohibited from doing business in the US as far as the telecommunications industry is concerned. US companies and ISPs are prohibited from using network equipment from these companies and have even been ordered to replace current equipment from these companies with those sanctioned and approved by the FCC.
Something that allowed the FCC to still be able to grant some exceptions, case by case, that as we saw shared from Reuters, involved the approval of more than 3,000 applications from Huawei in the last three years.
Thus, the new law establishes the requirement that the FCC establish rules that prevent it from approving or even reviewing any request for exceptions from companies that are considered to pose an unacceptable risk to the national security of the US, in which we can currently find names of major Chinese companies such as Huawei, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology and Zhejiang Dahua Technology.
With this arrangement, there is practically no room for maneuver for these companies to use and sell their communication products in North America, something that will undoubtedly affect them globally.
As expected, ties between the United States and China remain quite strained, and without a doubt this movement does not suppose any help just a few days before the next virtual meeting between the two world superpowers.