Huawei chairman urges US to reconsider ‘attack’ on global supply chain

Huawei’s rotating chairman Guo Ping. (AFP)
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Updated 24 September 2020

Huawei chairman urges US to reconsider ‘attack’ on global supply chain

  • Huawei said that from Sept. 15 it would stop manufacturing its most advanced chips under its Kirin line which power its high-end phones

SHANGHAI: Chinese telecom giant Huawei Technologies said on Wednesday its supply chain was under attack from the US and called on Washington to reconsider its trade restrictions which were hurting suppliers globally.

The world’s biggest maker of mobile telecommunications equipment and smartphones is under pressure from US trade curbs designed to choke Huawei’s access to commercially available chips.

“The US has modified their sanctions for the third time and that has indeed brought great challenges to our production and operations,” Huawei Chairman Guo Ping told reporters in Shanghai.

Washington says Huawei is a vehicle for Chinese state espionage and from Sept. 15 imposed new curbs barring US companies from supplying or servicing the company. Huawei has repeatedly denied being a national security risk.

Guo said that although Huawei had sufficient chips for its business-to-business operations, including its 5G network enterprise, it was feeling the pinch of the US restrictions on its smartphone chip stocks.

It understood that suppliers such as Qualcomm were applying for US licenses which would allow them to continue serving Huawei, he added.

Intel has already received licenses to supply certain products to Huawei, while China’s Semiconductor Manufacturing International Corp, which uses US-origin machinery to produce chips for Huawei, has applied for a license, Reuters has previously reported.

Huawei was willing to use Qualcomm chips in its smartphones should Qualcomm get a license to sidestep the restrictions, Guo added. Qualcomm did not immediately respond to a request for comment.

“We hope the US government can reconsider its policy and if the US government allows it we are still willing to buy products from US companies,” Guo said on the sidelines of its annual Huawei Connect conference.

Huawei has said that from Sept. 15 it would stop manufacturing its most advanced chips under its Kirin line which power its high-end phones. Analysts expect its existing supply of Kirin chips will run out next year.

Consumers have rushed to buy Huawei phones amid concerns its mobile division is about to fold. Vendors say that prices have spiked by as much as 500 yuan ($74) for some devices.

Washington has shown little sign that it is willing to back down from its fight with Huawei, which comes at a time when relations between the US and China are at their worst in decades.

The United States said last month it would expand a program it called “Clean Network” to prevent various Chinese apps and telecoms companies from accessing sensitive information on American citizens and businesses.

David Wang, a Huawei executive director, said that the company hoped that countries would introduce “rational standards” for 5G. Huawei had yet to see any adverse impact on its global 5G business from the US program, he said.


Saudi regulator refers investors to Public Prosecution over $346m in suspicious trading

Updated 30 November 2020

Saudi regulator refers investors to Public Prosecution over $346m in suspicious trading

  • The investors were suspected of violating Article (49) of the Capital Market Law

The Capital Market Authority (CMA), announced today, Nov. 30, referring 22 investors to the Public Prosecution over suspicious trading in shares of Dar Al Arkan Real Estate Development Co., and making illicit gains of SAR 1.33 billion ($346.7 million).

The investors were suspected of violating Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations, the market regulator said in a statement.

The claim was referred to the Committee for Resolution of Securities Disputes.

This came in line with the CMA’s efforts to protect the market from unfair as well as illegal practices, including deceit, cheating, fraud and manipulation, and to ensure market efficiency and transparency.

Last week, the CMA identified some cases suspected of manipulations, fraud and scam of the capital market rules and its executive regulations, amid the price fluctuations of some stocks, Argaam reported.

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