AP Explains: US sanctions on Huawei bite, but who gets hurt?

ABC News | 8/20/2019 | Staff
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Chinese technology giant Huawei has yet to feel the full force of U.S. sanctions due to temporary exemptions and other uncertainties.

Nonetheless, Huawei founder Ren Zhengfei says he expects no permanent relief because of the political climate in Washington. In an interview with The Associated Press, he also expressed confidence the company will thrive because it is developing its own technology.

May - US - Commerce - Department - Huawei

In May, the U.S. Commerce Department placed Huawei on its so-called Entity List. That effectively bars U.S. firms from selling it technology without government approval. The move escalates trade-war tensions with Beijing and risks dividing the world into two technology spheres as Huawei becomes more self-sufficient.

Here's a look at what's behind the dispute and what it means.

AFFECTED

WHO'S AFFECTED?

Huawei is the world's leading provider of networking equipment, but it relies on U.S. components including computer chips. About a third of Huawei's suppliers are American. Many are no longer permitted to sell to Huawei.

Huawei - Smartphones - Example - Version - Google

Huawei's smartphones, for example, will have to stop using the consumer-friendly version of Google's Android operating system that comes with maps, music and other popular services. Without those services, smartphone makers such as Samsung would have the advantage.

There are exceptions to the sanctions and questions about their scope.

Week - US - Government - Days - Reprieve

This week, the U.S. government extended by another 90 days a limited reprieve on a narrow list of products and services. Commerce Secretary Wilbur Ross said the main aim is to give smaller U.S. internet and wireless companies that rely on Huawei more time to transition away from reliance on its products. The grace period also allows U.S. providers to alert Huawei to security vulnerabilities and engage the Chinese company in research on standards for next-generation wireless networks known as 5G.

Other exports to Huawei officially remain restricted, though practice differs. Those sanctions, for instance, don't bar U.S. telecom companies from buying Huawei equipment....
(Excerpt) Read more at: ABC News
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