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Huawei Technologies’ logo is seen at the IFA consumer tech fair in Berlin, Germany on September 6. The Chinese telecommunications equipment maker continues to struggle with the US trade ban, despite Washington’s recent decision to grant it a further reprieve to buy major components from American hi-tech companies. Photo: Reuters

Trump’s blacklisting of Huawei is unfair and un-American, Microsoft president says

  • Microsoft’s Brad Smith warns Washington’s trade restrictions could expand beyond Huawei, threatening the US firm’s global competitiveness
Huawei

The Trump administration’s trade ban on Huawei Technologies is unfair and un-American, a senior Microsoft Corp executive said, as the international operations of the world’s leading hi-tech companies are caught in the cross hairs of the escalating US-China trade war.

Huawei’s blacklisting, which restricts the world’s largest telecommunications equipment supplier from buying US technologies over security concerns, should not have been made “without a sound basis in fact, logic, and the rule of law”, said Brad Smith, Microsoft’s president and chief legal officer, in an interview with weekly magazine Bloomberg Businessweek.

Software giant Microsoft has kept asking US authorities to clarify the basis of that trade ban, but Smith said: “Oftentimes, what we get in response is, ‘Well, if you knew what we knew, you would agree with us’.”

Microsoft’s reply to that was to suggest more transparency, according to Smith. “Great, show us what you know so we can decide for ourselves. That’s the way this country works,” he said.

Brad Smith, president of Microsoft Corp, speaks during a Bloomberg Studio 1.0 television interview in San Francisco, California, on September 4. Smith discussed data privacy, China tariffs, immigration and the future direction of Microsoft. Photo: Bloomberg
Huawei continues to struggle with the US trade ban, despite Washington’s recent decision to grant it a further reprieve to buy major components from American hi-tech companies. The company may delay overseas sales of its upcoming 5G Mate 30 series smartphones for lack of access to Google services under the US trade ban, according to a South China Morning Post report last month, citing sources.

“Brad was talking about the need for countries to use consistent principles before imposing significant sanctions on any company, and that those principles should be grounded in due process, the rule of law and transparency of approach,” a Microsoft spokeswoman told the Post in response to the Bloomberg article.

The US Commerce Department has received more than 130 applications from companies for licences to sell US goods to Huawei, according to a Reuters report last month, citing sources. The Trump administration, however, has not yet granted any such licence in the two months since the latest Huawei reprieve was announced.
Microsoft has followed Android operating system supplier Google and stopped accepting new orders from Huawei, which is also the world’s second biggest smartphone vendor, after the US blacklisting, according to a Post report in May, citing people familiar with the matter.

The two major areas of business between Huawei and Microsoft – Windows operating systems for laptops and other content-related services – have both been suspended by the US company to comply with US government restrictions, the report said.

The Windows operating systems equipped on existing Huawei notebook computers will remain eligible for updates and security protection. Microsoft’s services team for Huawei, however, has moved out of the telecoms gear maker’s headquarters in Shenzhen.

Microsoft’s Smith warned that the Trump administration’s trade restrictions could expand beyond Huawei, which would jeopardise the US tech company’s competitiveness in the global market. “You can’t be a global technology leader if you can’t bring your technology to the globe,” he said.

Despite the trade ban, Huawei saw its global share in telecoms equipment expand to 28.1 per cent in the first half of this year, according to data from market research firm Dell’Oro Group. Huawei also remains ahead in the 5G gear market with 50 announced commercial 5G mobile network deals.
The US blacklisting has also prompted Huawei to accelerate the roll-out of its self-developed mobile operating system called Harmony, which can support a range of devices as well as being compatible with all Android applications.

For more insights into China tech, sign up for our tech newsletters, subscribe to our Inside China Tech podcast, and download the comprehensive 2019 China Internet Report. Also roam China Tech City, an award-winning interactive digital map at our sister site Abacus.

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