FX.co ★ Huawei supports Apple

Ren Zhengfei, the CEO and founder of the Chinese tech company Huawei, addressed to the American authorities asking not to ban Apple’s products in China.

On May 16, 2019, the US Department of Justice placed Huawei Technologies Co. on a blacklist calling it untrustworthy in terms of information security. Google ceased cooperation with the Chinese company after the decree had entered into force. Other major US partners of Huawei including chipmakers Intel, Qualcomm, Broadcom, and Xilinx also cut off ties with the company.

Against this background, experts suggested that China would impose sanctions on Apple in response to US actions. Analysts at Goldman Sachs noted that such a scenario might cause a decline of up to 30 percent of the corporation’s revenue.

Last week, the US Department of Justice granted Huawei a 90-day business license. At the same time, American President Donald Trump said that the company could be part of a trade deal between two countries in the future. However, Ren Zhengfei stressed that this scenario is doubtful.

A number of American analysts said that sanctions against Huawei looked like a declaration of war to China. Experts warned that such measures could delay the global roll-out of 5G networks for a long time.

Huawei is the world's largest telecom-equipment manufacturer and the second-largest smartphone maker. This is the only Chinese company that earns abroad more than in the domestic market, experts emphasized.