U.S. to ease Huawei sanctions, scared of losing lead in technology?

Yes, it’s interesting news that just broke out, the U.S. has revised the plans to transfer important technologies to restricted companies including Huawei. This may lead us to ease U.S. sanctions posted on Huawei.

So, what does it actually means for the company and for everyone, and is this a result of the fear that is now haunting the U.S.?

According to Bloomberg, The U.S. Commerce Department has decided to come up with some so-called new “standards” which would allow even restricted companies to access U.S.-made technologies. However, there’s a direct catch, that these companies must have to obey what these standards decided by the commerce department.

What are these standards? It says, that the company will have to engage in a conversation with the commerce body to get further clarification on this matter.

“US stakeholders need to be fully engaged in international standards organizations, particularly where the critical but sometimes invisible standards that they set have important national security as well as commercial implications,” Alan Estevez, the Commerce undersecretary for industry and security, said in the statement.

“Today’s rule provides much-needed clarification to US industry and other organizations that will allow for continued US leadership in these critical bodies.”

Scared?

In 2019, Huawei has been included in the Entity List, a program to ban Huawei from accessing or selling technology to the U.S. market. That has brought a big lack of accessing new components and technologies to make new products.

One such example includes the ousting of Google Mobile Services (GMS) and another includes chipsets for both mobiles and ICT business.

The entire scenario has affected greatly Huawei and its subsidiaries. The revenue decline so does its market share in different categories of products.

Still, the company has decided to keep up and make new products with what it has in hand. Such an example could be seen in the sharing of patent technologies to generate extra revenue and make good use of existing stocks.

Meanwhile, Huawei continues to dig deep into new technologies and this could be clearly seen in advancements such as Satellite Calling, yes, it’s a new kind of advancement that has brought this Chinese company to fight head to head with Apple. Not even Samsung could do that but Huawei did.

On the other hand, Huawei keeps on looking for new ways to get chipsets or investing in companies that could advance in chipset precision technologies.

Yes! The U.S. doesn’t want to lose its lead over the technological world and for that, the best way is to open access to required technologies for all of the restricted firms. Another aspect is, that these firms bring a large share of income and revenue, as their absence causes big trouble for their business partner in the U.S, and the ease of Huawei sanctions might help big on this matter.

Which technologies?

Currently, the commerce department has not announced the list of technologies that will be shared with Huawei but we’ll keep you posted with any further remarks on this matter.