Will the new US sanctions have the skin of Huawei? – International mail

Chinese telecommunications company Huawei has reacted to new U.S. sanctions against it. She fears that these measures will jeopardize her activities. But, for some specialists, it will not be enough to take down the Chinese giant.

“Arbitrary and pernicious.” Here are the words used by Huawei, Monday, May 18, to describe the new sanctions implemented against it by the United States Department of Commerce. “Survival is our creed now”, added the thinking heads of Huawei, bring it back Financial Times.

What frightens so much of one of the biggest sellers of smartphones in the world, it is the decision of Washington to oblige the foreign manufacturers who use American equipment of manufacture of electronic chips to obtain a license before being able to sell semi – conductors to Huawei, explains the TV channel's website CNBC.

A blow to Huawei's business

The cost of this new constraint is in the hundreds of billions of dollars, announces Huawei, and its effects should be felt for consumers in more than 170 countries. Main victim: Taiwanese company TSMC, which supplies more than 90% of smartphone chips to Huawei, says CNBC.

A critical situation for the Chinese giant. Because, even if Huawei has been trying to diversify its supply chain for a year, by turning in particular to the Chinese manufacturer Smic, this is not enough, notes CNBC.

In terms of technological prowess, capacity and (production) scale, TSMC far exceeds Smic, says Neil Shah, research director at Counterpoint Research. ”

Faults that can be exploited

However, temper the Wall street journal, Huawei could still find a way out.

Experts from China have carefully scrutinized the American decision, said the conservative daily. First pitfall, "The semiconductor supply chain is so vast and consists of so many different steps that suppliers could claim that they did not know that their products ultimately benefited Huawei." Plead ignorance to circumvent the license.

In addition, the electronic components could be sent directly to Huawei customers, who would assemble them themselves, thus benefiting the Chinese company, adds the Wall street journal.

The move comes a year after another measure that put Huawei on an export checklist, Financial Times. Because the American authorities regularly accuse the Chinese giant of helping the government of his country in its practices of cyber espionage and theft of technologies, in particular through 5G, and all this within the framework of the trade war which opposes the two governments since several months.



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