Huawei: ‘China will retaliate against new restrictions from the US’

Huawei: ‘China will retaliate against new restrictions from the US’

So far, Huawei has been banned from supplying equipment for 5G networks, supplying smartphones to government officials and collaborating with American tech giants. The measures imposed on Huawei by the US government will, according to the tech giant, ensure a year that will be ‘the most difficult so far’, but also a year in which the Chinese government will come up with countermeasures.

The statement comes the day after the announcement of Huawei‘s annual figures: the weakest fiscal year in the last three years. Board member Eric Xu believed at the presentation that the Chinese government will not stand by and watch Huawei being ‘slaughtered’ from the sidelines.

“Why shouldn’t the Chinese government ban the use of 5G chips or base stations with such chips from US manufacturers? Also for cyber security reasons.”

China might come up with a reaction, but it probably won’t help Huawei much. Certainly not after rumours about new restrictions that the US wants to impose. For example, the supply of chips to Huawei by Taiwan’s Semiconductor Manufacturing would have to cease (if the US gets their way), which would mean that part of Huawei’s production would still be in trouble. However, according to Xu, there are alternatives if that happens.

“Should that scenario materialise, Huawei and other Chinese companies could choose to buy their chips from Samsung in Korea, MTK in Taiwan and Unisoc in China.”