Huawei, the telecom giant at the center of US-China tensions, has “sufficient” inventory for its communications equipment business while it seeks out supplies of smartphone chips that have been cut off by a Trump administration ban, the company said, reported Bloomberg.
Guo Ping, Huawei’s rotating chairman, told reporters Wednesday in Shanghai that the company has enough supplies to keep its enterprise and carrier units afloat, and it’s developing new consumer devices to offset the hit to its smartphone business. Huawei is still evaluating the impact of the US blacklist, which has greatly limited business with American suppliers, Guo said, though Huawei is still willing to buy from those companies.
A White House ban on companies providing American technology to Huawei went into effectlast week, cutting off the foreign-made semiconductors, software and other materials that are key to powering Huawei’s mobile phones and 5G base stations. While suppliers including Qualcomm have applied for licenses to continue shipping to the Chinese company, it’s unclear whether the US Commerce Department will issue the necessary permits.
“The US ban brings tremendous trouble in operation and production,” Guo said. Huawei will provide full support to its supply chain, including in areas like talent, technology and standards, to help navigate the restrictions, he said.