USA gives Huawei another 90 days to serve existing customers

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The directive went into effect May 16th, 2019 and all USA companies working with Huawei had to comply. Some of USA domestic telecom carriers, especially those in rural areas, where the optical cable infrastructure is weak, consider the cost-effective Huawei equipment a better option.

"I believe Huawei can find alternatives to these RF front-end chips, but it will take time for it to find sources that can compare favorably with American supplies in terms of stock and quality", he said.

These actions violate the basic principles of free market competition.

The founder of Huawei Ren Zhengfei has warned staff members to prepare for reform of the company, as it enters "battle mode" to survive the USA blacklisting. Over the weekend, Trump told reporters in New Jersey that "it looks much more like we're not going to do business ..."

In all, more than 100 Huawei subsidiaries have been placed on the Entity List, which makes it harder for the Chinese to circumvent the sanctions.

Shortly after blacklisting the company in May, the Commerce Department initially allowed Huawei to purchase some American-made goods in a move aimed at minimizing disruption for its customers.

The department first added Huawei Technologies and 68 of its overseas affiliates and subsidies to the Entity List on May 16 in response to a decision by the federal government's End-User Review Committee (ERC). Meng Wanzhou, Huawei's chief financial officer and the daughter of company founder Ren Zhengfei, has been detained in Canada since December in connection with those charges and faces possible extradition to the US.

After the US ban, Huawei showed the zeal to reassure markets that it will be business as usual. Moreover, Huawei's Mate 30 Pro and Mate X launch plans might be severely impacted.

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"Neither production nor shipment has been interrupted, not for one single day", company chair Liang Hua said. Many are no longer permitted to sell to Huawei. The company is also said to have switched to 24-hour days, requiring its developers to work across three shifts to cope with the tough conditions.

Huawei reported sales in the six months through June rose 23.2% over a year earlier. The company spent $15 billion previous year on research and development, more than Apple Inc. or Microsoft Corp.

While most consumers in the US don't even know how to pronounce Huawei (it's "HWA-way"), its brand is well known in most of the rest of the world, where people have been buying its smartphones in droves.

Huawei users would lose access to Google services - services like "Google Play Protect", which automatically scans for malware, viruses and security threats.

"We've acquired businesses in Japan, China and we have development centers in those countries as well".

The new reprieve is also meant to aid these customers, Ross said.

BUT at the same time, Ross also said the U.S.is adding 46 Huawei affiliates to the ban list.

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