The clashes between Huawei and the US administration don’t have any finish, and the Biden authorities can be tightening its grip on Chinese language tech firms. However the Chinese language have additionally taken motion to avoid U.S. sanctions in progressive methods. Huawei plans to license its smartphone designs to 3rd events to flee from sanctions.
The conflicts between Chinese language tech firms and the U.S. administration began when Donald Trump known as them a menace to the nation’s nationwide safety. On the similar time, the U.S. Senate imposed sanctions on these firms.
Now, Huawei desires to collaborate with different producers to bypass sanctions. The corporate beforehand needed to promote its sub-brand Honor to a consortium. Additionally, they determined to purchase 4G Snapdragon chips as a substitute of 5G as a approach to escape from US-imposed restrictions.
As per the Bloomberg report, the brand new plan will enable Huawei to entry gear like smartphone processors. U.S. sanctions, particularly, have barred Huawei from accessing these important parts. Measures have additionally been taken to limit Huawei software program. By licensing smartphone designs to third-party producers, Huawei can considerably develop its smartphone manufacturing.
China Postal and Telecommunications Home equipment Co. (PTAC) might be Huawei’s companion for promoting self-branded smartphones. The PTAC is at present serving to Huawei to promote Nova telephones like Nova 9.
Huawei companions with PTAC to bypass its commerce ban
Huawei’s market share is at present declining considerably, and partnering with PTAC stands out as the solely method out for the corporate to maintain its operations alive. As the corporate chairman famous earlier than, chip sourcing is their greatest drawback and tremendously impacts their operations.
Huawei has not too long ago been the goal of a brand new spherical of U.S. sanctions. About two weeks in the past, the Senate handed a brand new invoice imposing sanctions on Huawei and ZTE. The invoice was additionally signed by Joe Biden to be formally applied. Beneath the brand new invoice, the Federal Communications Fee (FCC) shouldn’t approve any requests from the 2 firms. Earlier licenses are additionally revoked.
It’s nonetheless unclear how the U.S. administration would react to Huawei and PTAC partnership. Nonetheless, restrictions could also be imposed on the PTAC if the US identifies this cooperation as a backdoor for circumventing sanctions.
Not one of the events has but formally responded to the information. However this isn’t one thing that may be stored secret for lengthy. Huawei is among the largest smartphone producers in China, and its return to the worldwide market will undoubtedly provoke lots of reactions.