Huawei chairman urges U.S. to reconsider 'attack' on global supply chain
Chinese telecom giant Huawei Technologies [HWT.UL] said on Wednesday its supply chain was under attack from the United States and called on Washington to reconsider its trade restrictions which were hurting suppliers globally.
The world's biggest maker of mobile telecommunications
equipment and smartphones is under pressure from U.S. trade curbs designed to
choke Huawei's access to commercially available chips.
"The U.S. has modified their sanctions for the third
time and that has indeed brought great challenges to our production and
operations," Huawei Chairman Guo Ping told reporters in Shanghai.
Washington says Huawei is a vehicle for Chinese state
espionage and from Sept. 15 imposed new curbs barring U.S. companies from
supplying or servicing the company. Huawei has repeatedly denied being a
national security risk.
Guo said that although Huawei had sufficient chips for its
business-to-business operations, including its 5G network enterprise, it was
feeling the pinch of the U.S. restrictions on its smartphone chip stocks.
It understood that suppliers such as Qualcomm <QCOM.O>
were applying for U.S. licences which would allow them to continue serving
Huawei, he added.
Intel <INTC.O> has already received licences to supply
certain products to Huawei, while China's Semiconductor Manufacturing
International Corp <0981.HK>, which uses U.S.-origin machinery to produce
chips for Huawei, has applied for a licence, Reuters has previously reported.
Huawei was willing to use Qualcomm chips in its smartphones
should Qualcomm get a licence to sidestep the restrictions, Guo added. Qualcomm
did not immediately respond to a request for comment.
"We hope the U.S. government can reconsider its policy
and if the U.S. government allows it we are still willing to buy products from
U.S. companies," Guo said on the sidelines of its annual Huawei Connect
conference.
Huawei has said that from Sept. 15 it would stop
manufacturing its most advanced chips under its Kirin line which power its
high-end phones. Analysts expect its existing supply of Kirin chips will run
out next year.
Consumers have rushed to buy Huawei phones amid concerns its
mobile division is about to fold. Vendors say that prices have spiked by as
much as 500 yuan ($74) for some devices.
Washington has shown little sign that it is willing to back
down from its fight with Huawei, which comes at a time when relations between
the United States and China are at their worst in decades.
The United States said last month it would expand a
programme it called "Clean Network" to prevent various Chinese apps
and telecoms companies from accessing sensitive information on American
citizens and businesses.
David Wang, a Huawei executive director, said the company
hoped that countries would introduce "rational standards" for 5G.
Huawei had yet to see any adverse impact on its global 5G business from the
U.S. programme, he added.
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