Published: Thu, May 23, 2019
Tech | By Constance Martin

USA 'underestimates' Huawei, says founder Ren Zhengfei

USA 'underestimates' Huawei, says founder Ren Zhengfei

A Huawei spokesman said: "We value our close relationships with our partners, but recognise the pressure some of them are under as a result of politically motivated decisions.

Ren said today that Google has been trying to persuade the US government to "solve the problem", and also said his company was working on a "rescue solution", but did not elaborate. The US government has stated that Huawei could buy goods from American businesses until 19 of August this year and the chip stocks rose right after the announcement.

South Korea's Samsung is expected to pick up most of Huawei's customers if the United States goes through with a ban on selling to the company.

In fact, on last Thursday (May 16th), United States had put Huawei in such a blacklist which would make it nearly impossible for the Chinese company to operate businesses with its USA suppliers, and a similar restriction on China's ZTE Corp.

This year, Huawei will most likely see the steepest drops in shipments in Western Europe, while its home market China will be the least affected by the latest developments, Strategy Analytics said on Wednesday.

Vodafone UK said on Wednesday it had dropped a Huawei 5G smartphone from pre-orders for its new service starting in July, because of uncertainty about long-term support and services for the device.

But now, the U.S. Department of Commerce has chosen to grant Huawei a license of 90 days so it could help existing customers. This will present Huawei "really with a very tough time", he said.

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And he added: "To build a new ecosystem is a big thing, we should take it step by step".

A Huawei executive has previously mentioned the challenges of creating an operating system. He said Huawei had long prepared for clashes with the U.S.

Huawei's key USA suppliers, including chipmakers Qualcomm and Xilinx, are reported to have said they will stop supplying the Chinese company with immediate effect.

"We have secured enough (Huawei equipment) for base stations (for the 5G network), we believe there won't be a problem", said a LG Uplus official.

The reports also mentioned that the OS is now in the trial phase and will bring about a Huawei controlled ecosystem.

Microsoft has also held off on making any definitive statements on whether it will continue to permit updates to Huawei devices running Windows 10, according to The Verge.

Google said it would continue to support Huawei's existing devices, but future Huawei smartphones would not have its popular flagship services such as its Play Store, Gmail, maps and search.

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