How some tech companies are continuing to sell to Huawei | TECH(feed)


Hey everyone welcome back to tech feed i’m
juliet beauchamp. I’ve got an update for you about the huawei
ban–and how some american tech companies are using loopholes to continue to sell to
huawei. Stick around. There’s been a lot of uncertainty surrounding
the ban that bars business transactions between u-s companies and chinese tech giant huawei. The commerce department granted american companies
a 90-day reprieve, which means they can continue to work on current huawei products until mid-august. But the new york times reports that some u-s
chip makers have found a loophole of sorts in the ban. Chip makers such as intel and micron have
continued to sell to huawei, as long as the parts they’re sending the company aren’t
american-made. Yes, not all products manufactured abroad
by american companies are branded as american-made. As long as the chips don’t pose security
risks and companies don’t offer troubleshooting or support, they should be okay to sell to
huawei. This could be in direct conflict with the
ban–the wireless and memory chips supplied by these companies could possibly be used
in future huawei devices, not current ones. While it’s not clear how much of the sold
goods are for future huawei products, government officials aren’t happy. The huawei ban has caused a lot of confusion
for a lot of american companies. Much of huawei’s supply chain comes from
tech made by u-s based enterprises. And immediately following the issuing of the
ban, most of the american companies cut off business with huawei in an effort to comply
with the government. Upon further inspection and the temporary
reprieve, tech companies began to work more with huawei. And for good reason–plenty of these companies
fear that huawei will simply turn to competitors if the u-s ban is upheld. So where does this loophole leave intel and
micron? Well, for the time being, they’ll probably
carry on doing what they’ve been doing–selling chips that aren’t labelled as “american-made”
to huawei. This whole ban has the potential to seriously
disrupt many supply chains–especially if tech companies have no choice but to comply
with the united states. But i don’t want to speak too soon–a lot
about the ban could change if the united states and china reach some sort of trade agreement
during the g-20 summit this weekend. Thanks for watching this episode of tech feed. If you liked this video be sure to give it
a thumbs up and subscribe to our channel. If anything about the ban changes after this
weekend–and i have a feeling it will–we’ll keep you updated. See you next time.

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