In an apparent U-Turn from US President Donald Trump’s earlier supposed intervention, the US administration has released an early publication of a rule that will ban all new contracts or buying of equipment from Huawei, ZTE and a number of other Chinese companies starting from 13 August 2019. The rule further states that these companies are still allowed to service previous infrastructure (the old US networks in various rural towns) as long as they provide full disclosure but only until August 2021, so it’s not a complete ban, but just one that benefits the US government (how surprising, lol).
This comes after ZTE already paid all their millions in fines and Trump’s statements that Huawei can resume buying US components, but the rule does state that a waiver can be provided by a chief of agency, so Trump can still step in personally if he wants to. Huawei have repeatedly denied any wrongdoing that would warrant such a ban but the US have long been wary about Huawei. The rule does not explicitly stop Google and other tech companies from selling to Huawei though, just that Huawei and ZTE aren't welcome by US agencies.
Huawei have also repeatedly stated that whatever the US does, has little impact on them. They seem set to come out with a Hongmeng OS smartphone this year and have replaced various US parts in their supply chain from other sources (with complete independance due in 2021) while also challenging the constitutionality of the ban. We think this is the right way to go rather than hope for another U-Turn from the US, but what do you think? Let us know on our Facebook page and stay tuned to TechNave.com.
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