Although Huawei’s cellular business has learned to survive without Google, Qualcomm, and some ordinary works that come from the US, the benefits of the company not only rotate around a smartphone. It can be debated that the greatest income may come from network and hardware technology, such as those used by Internet service providers or ISPs. It always depends on the balance since the US and its allies began to push Huawei out of their network. Now the Biden government has just imposed a greater restriction of Huawei, ZTE, and other companies that are suspected of being practical will make them out of the country fully.
Loophole.
It has been many years since Huawei is the target of the efforts of the US government to improve its security for foreign companies that are believed to be used by their enemies as espionage tools. Even though it hasn’t been proven in court yet, Trump’s administration places Huawei on the “list of entities” famous in the country, an act that was not canceled by President Cuples Joe Biden. In fact, signing this new law strengthened the image of Huawei as a threat of security for the US.
In general, Huawei, ZTE, and several other companies are prohibited from doing business in the US as far as the telecommunications industry concerning. US companies and ISPs are prohibited from using network equipment from these companies and even directed to replace current equipment from these companies with agreed and approved by the FCC. However, it was not a death sentence for Huawei’s business because of a kind of gap opened by previous directions.
Before this new law, the FCC still has the ability to make exceptions based on cases-to-cases. The FCC itself admitted to Reuters that the Commission has approved more than 3,000 requests from Huawei in the last three years. That, of course, beat the goal forbid Huawei from the US network, and the administration currently connects the hole once and for all.
Secure Equipment Act 2021
According to the new law, the FCC was asked to set a rule that would block it from approving or even reviewing any application for exceptions originating from companies that have been considered as a risk that cannot be accepted by US national security. Besides Huawei and ZTE, the list also includes Hytera Communications Corp., Hangzhou Hikvision Digital Technology Co., and Zhejiang Dahua Technology Co.
With this provision, there is no remaining space for Huawei to have network products used and sold in the US. Short challenging law in court, which will practically mean that the five companies are completely closed in the country, something that might also be followed by US allies. It puts the last nail in the Huawei coffin as far as the US communication industry runs, further put the company’s future at risk.
Future
Not surprisingly, both Huawei and the Chinese government were not entertained by new laws. The bond between the US and China continues tense, and this is only a sour only for days before two world suppower is scheduled to meet virtually. Huawei continued to protest his innocence and called the US government for his unfair sentence.
While this problem now looks close for ISPs and network equipment, there are still a number of open questions about Huawei and ZTE consumer products, especially the last smartphones are still available in the US through several retail channels. Of course, these products still need FCC approval, but it is not clear whether direction will apply to cellular devices, computers, and accessories as well.
