While the United States ban on Huawei products has been delayed, the potential threat to consumer electronic markets has caused companies to take action. While some US companies have already ceased relations with Huawei, the Chinese-based manufacturer has decided to launch their own operating system for their newest phone model.
Breakdown of the Strained Relationship
The Chinese tech giant had already been hit with indictments after accusations of Intellectual Property theft and voiding laws regarding US relations with Iran. Then the US created a National Defense Authorization Act which prohibited federal U.S. agencies from buying Huawei products or ZTE products due to national security concerns.
Since these incidents occurred, several US companies have cut their ties with Huawei including:
Add in the worldwide competition for a solid 5G network and the relationship with the Chinese electronics manufacturer becomes a serious issue. In response to the United States’ ban on their products, Huawei sued the country claiming that the ban was unconstitutional. They went on to say Congress failed to prevent sufficient evidence to back up their claims and were essentially singling them out.
The Controversy Comes to a Head
The White House budget chief recently announced that he is looking for a delay on the ban that prevents US government and businesses from using Huawei products. Director of the Office of Management and Budget, Russell Vought, wrote a letter to the Vice President and House Speaker explaining that implementing a ban too quickly would result in a significant reduction in suppliers to the federal government and rural telecommunications firms.
The U.S Department of Commerce added Huawei and 68 of its non-U.S affiliates to a blacklisted group that cannot obtain US goods without an export license from the government. The issue with this decision is that many smaller carriers will not be able to offer low-cost services to their subscribers because Huawei offered competitive rates. The ban would collectively cost US carriers with fewer than 100,000 subscribers up to $1 billion.
Due to concerns over the ban, President of the United States, Donald Trump, delayed the ban until August 19 so that partners and customers could have time to create alternate arrangements and plans to keep their business afloat without Huawei’s help.
Huawei’s Response to the Ban
Aside from suing the US over the ban, the company has reportedly been sitting back and watching the events unfold. A judge is scheduled to hear arguments that the manufacturer’s legal counsel brought to light regarding the U.S. Constitution on September 19 in Texas.
Knowing they may soon be unable to use Google’s Android OS for their phones, Huawei has been developing their own operating system called “HongMengOS” or in English, “Oak OS.” It is reported to come out in August or September alongside their new “Mate 30” phone series.
Huawei currently uses the open source version of Android that has much less security. It also cuts off Google from receiving consumer data that drives advertising, carrying another problem stemming from the ban.
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