29 January 2020

Huawei braced for US sanctions and will thrive under pressure

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New US sanctions against China’s telecommunications companies will not hinder growth of Huawei, which is well prepared for them, Deputy Director at the Institute of Economics and Business Administration, Central China Pedagogical University (Wuhan, Hubei), Zhou Weidi told. reports citing TASS.

"Huawei is constantly allocating around 30% of its revenue for the research and development of new key technologies, so the corporation was able to prepare for US sanctions in advance. Huawei’s development needs technological cooperation with other countries, both developed, including the United States, and developing," he noted.

According to the expert, even after the new sanctions enter into force, Huawei will not be able to completely stop interaction with the United States in the field of technology. "The main factor will remain its own technological potential, on the basis of which this company is able to ensure its development," he said.

The company’s progress and expanding the scope of opportunities for improving key technologies depend on intensification of Huawei’s interaction with foreign enterprises, the expert noted. "Therefore, Huawei will not be able to completely halt international cooperation, including with the United States," he concluded.

On Tuesday, a ban on purchasing and using telecommunications equipment of China's ZTE and Huawei by US government agencies came into force in the United States. The relevant measures apply to video surveillance systems and equipment of Chinese companies Hytera Communications Corporation, Hangzhou Hikvision Digital Technology and Dahua Technology, as well as their subsidiaries. A ban is also imposed on the purchase of services from the listed legal entities.

On May 15, US President Donald Trump signed a decree introducing a state of emergency to protect the country's information and communications infrastructure from external threats.

In August 2018, Trump signed an order banning US government agencies from using the equipment manufactured by Huawei and another Chinese company ZTE.

2019.08.13 / 21:53
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