Ban on US companies selling parts to Huawei will come into force on Friday, said US Trade Secretary
Wilbur Ross told Bloomberg on Thursday that new regulations would prevent Huawei from acquiring components and technology from a US company without government approval
Huawei Technologies Co. Ltd. and 70 affiliates are included in the "List of Entities" of the US Department of Commerce. This step makes it difficult (if not impossible) for the company to sell certain products, relying on US suppliers
On Wednesday, Ross said President Donald Trump was seeking to "prevent US technology from being used abroad ̵
The dramatic move is taking place because the Trump administration has aggressively lobbyed other countries not to use Huawei equipment on the next generation 5G networks. And just a few days after the Trump administration introduced new Chinese commodity tariffs, the increasing trade war
US officials have long been afraid that the Chinese government could use Huawei's equipment to spy on Americans
. Huawei's blacklisting can have consequences not only for the company itself: it can not only disrupt Huawei's business, but it can also harm US suppliers.
The extensive US repression published on Wednesday was the latest shooting that began with the increasing trade war . slowdown in the global economy
"Find a Resolution"
The short administration decision and possibly the failure of Huawei caused sharp victories on Thursday.
Chinese officials said that US aggression could undermine the trade negotiations that proved to be deadlocked last week, as Washington raised tariffs on Chinese goods and Beijing withdrew higher taxes on US products.
Gao Feng, Chinese Ministry of Commerce, emphasized that the US should avoid further harmful relationships. "China will take all the necessary measures to firmly protect the legitimate rights of Chinese firms," Gao told reporters.
Meanwhile, Huawei's US suppliers' share prices fell due to the fear that a huge US chipset, software and other hardware purchaser
in a statement by Huawei stated that "loss of access to US suppliers would" cause severe economic damage to American companies "and affect "Tens of thousands of American jobs"
. Of the $ 70 billion that Huawei spent on purchasing components in 2018, about $ 11 billion. US dollars went to US companies, including Qualcomm, Intel and Micron Technology Inc. And they saw the income disappear.
resolution on this issue.
The company reported last month about $ 27 billion. US $ 1 million in first quarter earnings and reported $ 59 million in the first quarter The company's revenue, including the world's second-largest smartphone manufacturer, touched 721 billion yuan ($ 105 billion).
"Disappointment in the United States"
Huawei's supply chain pain would double if the trade war were to send larger Chinese technology industries
"A bigger problem would be [that] US Allies who previously bought Huawei components could not continue to do business with Huawei because he fears that he might harm the United States, ”he said. Doh Hyun-woo, NH Investment & Securities Analyst in Seoul.
Huawei led the Chinese campaign to develop its top-of-the-range technology to reduce dependence on foreign imports, and this effort was made after US sanctions for ZTE
in 2016. March. The US Department of Commerce added a list of ZTE Corporation's suspicions about a complex scheme to conceal US exports to authorized countries in violation of US law.  Restrictions prevented suppliers from providing ZTE with US equipment, possibly freezing the supply chain of Huawei's competitors, but they were short-lived. The US has temporarily suspended restrictions in temporary cases allowing the company to communicate with US suppliers until it has accepted the complaint after a year.
August Huawei and ZTE equipment
Reuters News Agency