Tech stocks slide after United States blacklist the company Huawei along with 70 affiliates
The United States has been trying hard for a long time for all their western allies to stop using equipment which is made by Huawei. Washington tries its level best to make it hard for all the Chinese telecom titan to grow its business in the States. The United States Department of Commerce has also announced that they will be adding 70 more affiliates along with Huawei and they will be calling them the Entity List. This will encourage other businesses to buy equipment from companies which are set in the United States.
Huawei is one of the biggest telecom equipment makers of the global market, but they rely highly on American suppliers. These new laws from the United States will end up making things much harder for the company. All the dramatic moves were made effective for Huawei and all of its affiliates. The shares of Tatfook Technology which generally sell to Bosch and Ericsson dropped by almost 2.84 percent. Huawei also saw a dip of 4.88 percent. There was also a key partner of Chunxing Precision Mechanical also had a dip of 5.37 percent.
There was absolutely no comment from Huawei directly after the release of the blacklist from the United States. Huawei also said:
“Restricting Huawei from doing business in the U.S. will not make the U.S. more secure or stronger; instead, this will only serve to limit the U.S. to inferior yet more expensive alternatives, leaving the U.S. lagging behind in 5G deployment, and eventually harming the interests of U.S. companies and consumers”
This is some of the hardest criticism that has been received by Washington. The 5G advancement in the world market will definitely affect because of Huawei. The Chinese company also said that it was unreasonable restrictions will infringe upon Huawei’s right and raise other serious legal issues
The President of United States Donald Trump declared a national emergency along with releasing the blacklisted list. He declared a national emergency over technology supply chain threats from the country’s foreign adversaries. The Department of Commerce also said:
“Huawei is engaged in activities that are contrary to U.S. national security or foreign policy interest.”
The allies of the United States are all investigating the possibility of Huawei becoming a security threat on how close they should keep with Huawei. The company has also released a statement where they already took a bold step so that they can reassure their clients.
Huawei told the reporters that:
“Willing to sign no-spy agreements with governments, including the U.K. government, meet the no-spy, no-backdoors standard.”
Huawei’s CFO Meng Wanzhou is also been arrested now because of breaching the United States sanctions in Iran.