Huawei Developing Its Own Tech Solutions to Offset Sanctions

Huawei has been coming up with more new products and services supported by its own self-developed technologies lately amid the groundless and arbitrary US crackdown, which shows that the Chinese tech giant does not expect Washington to lift its sanctions, analysts said.

As the firm accelerates the building of its own ecosystem and invests in core technologies, the efforts to reduce reliance on US technologies will also be a heavy blow for some US tech firms, they said. 

US prosecutors targeted Huawei again by accusing a Chinese professor of taking technology from a California-based company to benefit Huawei, according to Reuters.

Although Huawei has not been charged, the company said it views the case against the professor as the US government's latest instance of "selective prosecution".

Huawei on Tuesday said that the US government has returned a batch of telecommunication equipment impounded two years ago, and the company has dropped its lawsuit against the US government over the matter.

Commenting on the return of the Huawei goods, a spokesperson for the Chinese Foreign Ministry said on Tuesday that the US has in fact admitted the illegality and arbitrariness of its action, which was disgraceful and unethical.

In May, the US Department of Commerce placed Huawei on a blacklist that could prevent Google from supplying it with Android services.

Microsoft has come out in support of Huawei, arguing that the current sanctions on the Chinese tech giant are "un-American", according to US media reports. Microsoft's president said that US government action shouldn't be taken without "sound basis in fact, logic and the rule of law".

Since blacklisting Huawei, the US Commerce Department has received more than 130 license requests to sell to Huawei, Reuters reported, citing insiders. Analysts said that Huawei is prepared, should the US decide against relaxing its restrictions, but suggested that US companies might not be prepared for the worst scenario.

While Huawei will soon release a Google app-free smartphone, it has been accelerating the development of its self-developed Map Kit, an equivalent of Google Maps. The service is being pitched to overseas developers, which will enable them to develop new applications and expand the map's capabilities. 

The Map Kit will be launched in October. 

The company has been putting its self-developed technologies including chipsets and its operating system (OS) into use lately, reflecting the strong determination to move forward despite the US blacklisting. 

Jia Mo, an analyst at Canalys, told the Global Times on Tuesday that given Huawei's market share in China and overseas markets, its stepped-up efforts to build its own ecosystem will pose a big challenge to its current suppliers in the US, such as Google.

An ITIF analysis of potential limits on exports of emerging technologies shows that, depending on the stringency of the controls, US firms could lose $14 to $56 billion in export sales over five years, threatening 18,000 to 74,000 jobs. And placing Huawei on the entity list will have significant ramifications for US suppliers, which provide about one-seventh of Huawei components.

Out of $70 billion Huawei spent buying components in 2018, some $11 billion went to US firms including Qualcomm, Intel Corp and Micron Technology, according to Huawei. 

"Huawei has not planned to surrender to the US crackdown from the beginning. It will only move forward faster", Jiang Junmu, a veteran industry analyst, told the Global Times.

This article was originally published in the Global Times.

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