Huawei Fully Banned In US: What Is Company's Next Move?

The U.S. government has recently ruled out the full ban for the Entity List companies, such as Huawei. Huawei’s reprieve is the only thing allowing the company to continue working with American firms for the next few months. However, what is the company planning once the reprieve is over?

According to Reuters, the U.S. Federal Communications Commission (FCC) voted 5-0 in favor of deeming Entity List companies, such as Huawei and ZTE, to be security threats to the country. In effect of this ruling, Huawei is now banned from any access to telecoms equipment coming from the United States.

The ban has already affected the company’s chances to sell its new products in the U.S., and this new ruling could fully bar Huawei from ever working in the United States ever again. As of now, Chinese president Xi Jinping is still actively trying to find a way to reverse this ban or alleviate it somehow.

With the U.S. market out of Huawei’s future, the ban in full effect is a problem for the Chinese tech giant. Huawei was adamant in keeping its U.S. ties with other companies and even Google. The ban barring them further prevents any presence of the company in the region while its rivals, Samsung and Apple, are currently competing to take the top spot.

On the other end, Huawei’s reprieve only lasts 90 more days with its recent extension. The reprieve roughly lasts an additional three months and is designed to help Huawei tie up loose ends with its partners in the U.S. before going out for good.

So far, the company has been finding ways such as planning to sell its 5G infrastructure and technology to other countries. However, the U.S. government is hot on Huawei’s heels as the government is preventing its allies on adopting any of Huawei’s technology as part of its seeing the tech giant as a security threat. Huawei is extremely cornered in selling its technology wares internationally.

As of now, Huawei is still making smartphones and devices for China and other countries outside North America. In early 2020, the company is said to be planning to release the Mate P40. Huawei’s moves for its new devices are limited unless the U.S. government changes its stance on the ban.