Why it’s tempting to feel sorry for Huawei

By Tom Cheshire, Asia correspondent

Huawei has achieved quite the feat: in the space of a year, it's gone from a little known company in the US to a "national emergency".

US President Donald Trump didn't name the Chinese telecoms business in his executive order.

At this stage, he doesn't have to: Huawei's notoriety in the current administration means we all know who he's talking about.

The order effectively bans Huawei from the US market. That's less of a big deal than you might suppose.

First off, Huawei has already been banned from federal networks. And it doesn't have much of a presence stateside.


Its huge revenues – $107bn (£83bn) in 2018 – overwhelmingly come from China and the rest of the world.

However, another statement is more worrying for the company.

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US has 'called it wrong' on ban says Huawei

The US Commerce Department added Huawei to its "entity" list. This means that American companies cannot sell technology to Huawei without a special licence.

For all its undoubted and home grown prowess in 5G networks, Huawei still relies on American technology, from chips to software.

The US applied a similar order to ZTE, another Chinese telecoms business and it was a hammer blow.

Chinese President Xi Jinping asked Mr Trump to remove the order as part of trade negotiations. Mr Trump said he did so as a favour to Mr Xi, keeping the company alive.

The electronic display on a Huawei mobile wifi device, in London. PRESS ASSOCIATION Photo. Picture date: Thursday April 25, 2019. Photo credit should read: Yui Mok/PA Wire
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Huawei is better placed than its compatriot company but will still be put under pressure.

That sort of favour is unlikely this time.Read More – Source

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