Huawei warns US companies

Huawei warns US companies
Huawei warns US companies

Beijing will not remain silent over Huawei's assassination, said a chief executive of Chinese technology firm Huawei.  He warned that if any further sanctions were imposed on the Chinese company, it would be answered.  Eric Yu, who was in charge of Huawei's current chairman, told CNBC on Tuesday.

 The top official of Huawei said that if the US government does not allow the country's institutions to produce chips for Huawei, an alternative will be found.

 The news agency Reuters recently reported that senior officials in the Trump administration are issuing new rules that require approval if US chip manufacturers make chips for Huawei using that country's machinery.

 According to a source, Reuters said the rule was being taken to prevent Taiwan Semiconductor Manufacturing Company (TSMC) from selling the chips to Huawei.  The company is working on making chips in Huawei's design.

 Reacting to the Reuters report, Eric Yu said that if such rules were implemented by the United States, Beijing would take counter-measures.  Once Pandora's Box opens, the chain will start a deadly chain reaction on the global ecosystem.  It will not just destroy Huawei.

 The US is arguing that China's 3G equipment is a threat to national security.  Yu said China may also ban its products in the Chinese market if they want the same device for US machines.  If Beijing takes counter-measures, it will have a profound global impact on the sector.  Huawei's death will also affect US institutions.

 Last year, Huawei was blacklisted by the United States and US companies were banned from trading with Huawei.  However, in some cases Huawei still has to allow equipment to be supplied.

 The US sanctions have impacted Huawei's earnings.  Huawei authorities announced on Tuesday their annual earnings announcement last Tuesday that their annual earnings were lower than their internal forecasts.