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US eases sanctions against Huawei

USA luzują sankcje wobec Huawei

After 3 years of restrictions, the US government relaxes.

Huawei’s founder recently advised us to be prepared for tough times. Perhaps, thanks to new regulations in the US, it will be easier for Huawei to survive.

The US is ready to ease restrictions on Huawei and other Chinese companies from the “block list” – according to a new regulation announced by the US Commerce Department. Well, it allows some hardware and software to be supplied to Chinese recipients, subject to an agreement on standards for use of the technology. The new regulations expand the scope of “permitted exports” for Huawei beyond the “low-level technology” permitted by the 2020 regulation. “Low-level” software and encryption technology.

A significant reason seems to be that US authorities can control compliance with standards and monitor the development of technology in China and, if necessary, take action due to standards violations. Currently, the United States fears that China will overtake American solutions by developing its own technologies more and more independently – which is its plan. Also, US companies are losing out due to sanctions.

The US introduced sanctions against Huawei in 2019. It includes a ban on companies from the United States and other countries providing technology, hardware and software to Chinese companies (which is allowed on the basis of a separate permit – a license granted by the Department of Commerce to specific suppliers).

Huawei’s smartphone business has been particularly affected as a result of the restrictions. Sales of the entire company fell for 2 years. only In Q2 2022 The result is stopped draining.

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August this year. Ren Zhengfei, the founder of Huawei, predicts a 3-5 year recession Economic activity in the world and therefore tough times for the company.

According to him, instead of focusing on the size of the business, the priority should now be to pursue profitability and cash flow.

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