Huawei Won’t be Out from Restricted Entities List of the U.S.

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Chinese telecom gear makers were a crucial aspect for the development of the 5G network since they were supplying the essential telecom equipment required for the deployment of the next-generation network. However, the US started a tech war against the Chinese gear makers stating that it hampers the security and privacy of customers. Not only this but to make things difficult for the companies, the US also urged its allies to restrict Chinese gear makers from supplying telecom equipment. However, a new report by ANI reveals that renowned Chinese telecom gear maker Huawei won't make it out from a list of restricted entities who are banned from gaining access to US hardware and software.

Huawei was Deemed as Competitor to US Interests

Huawei has witnessed a roller coaster ride in the recent period. The entity rolled out its financial results since 2000, and the figures were concerning for the officials. Huawei reported its weakest annual revenue growth in a decade last year. Tracing back to the reign of the Trump administration, Huawei was dubbed as a competitor to US interests under the guise of national and cybersecurity.

Back in 2018, Trump outwardly stated that under his supremacy, the US could kill any Chinese entity by banning their native companies from exporting to ZTE, which is a direct rival to Huawei. Currently, the US Innovation and Competition Act from which Huawei has been left out awaits passage in the US House of Representatives.

Huawei’s Future Remain Gloomy

Till May 2019, Huawei was under the radar of the US government. The Chinese telecom gear maker was added to the list of entities that were not allowed to purchase parts and components from the US without US government approval. As per SCMP quoted analysts, Huawei’s future remains gloomy in the US chip blockade as the entity has recently transitioned from a pure hardware provider to a software service company, including cloud and its own operating system.

The tech war has resulted in the lowering of the brand value of Chinese gear makers. Washington has labelled all the Chinese tech companies, including ZTE, Huawei, Hytera Communications and Dahua technology, as national security threats.

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