Huawei Continued to Expand in Middle East Despite US Restrictions

Huawei Continued to Expand in Middle East Despite US Restrictions

Huawei is the world’s biggest supplier of telecommunications networking equipment and number-two smartphone manufacturer. Chinese tech giant has earned $58.3 billion as revenue in the first 6 months of 2019. The sales of smart phones dipped in North America but boosted in China.

Trump administration has imposed restrictions on Huawei which severely affected its business in North America. US government is also putting pressure on the different governments to cancel the old contracts and not to sign the new contracts. The Chinese company is making all out efforts to survive and to retain the business.

Chinese tech giant Huawei signed 11 5G contracts with different Gulf states despite the efforts of Trump administration to curtail the Huawei’s business through trade restrictions and pressuring the governments. Despite the opposition from US government- Huawei continue to expand its business in Middle East.

Trump administration targeted Huawei after accusing it of spying. The US government claims Huawei equipment could contain security loopholes that allow China to spy on global communications traffic, and is urging nations to shun the company in 5G networks. Huawei denies the allegations of spying and monitoring. The US never brings any substantial evidence of its claims. Huawei is one of the key elements in the ongoing US-China trade war.

The US has also targeted sales of the Huawei smartphones by placing the Chinese firm on an ‘entity list’ that restricts its ability to buy and use American technology. This has impacted on the Chinese firm’s use of Google Marketing Services, which includes Google Play Store, YouTube and Google Maps.

The Google is urging the US government to lift the restrictions on US firms to resume business with Huawei. So far US government has kept its silence on this issue.

Just last week, US officials told Reuters that the US Federal Communications Commission admitted issuing a warning to Saudi Arabia, the UAE and Bahrain earlier this year about potential risks in using Huawei’s superfast equipment.

In the Gulf region, however, the impact of the US lobbying has had little effect, with 11 telecom firms in the UAE, Saudi Arabia, Kuwait, Oman and Bahrain signing 5G contracts, with a further 28 contracts signed in Europe.

Joe Kelly, vice president, corporate communications Huawei, told the media that “I know that the US government has been trying to engage the Middle East in the same conversation as Europe around restricting Huawei. I see no evidence yet that it is having a material impact on our business – our business in the Middle East remains strong. It’s not being affected as much as other parts of the world – very small impact on consumer [business].”

Joe Kelly said “GCC governments have no big issues with Huawei because they think we’re in compliance with their national security standards. What we do know is that the carriers in Europe and the carriers in the Middle East have already spoken on Huawei’s 5G. Twenty-eight European carriers have signed commercial contracts for 5G, 11 have signed contracts in the Middle East. That is a public commitment and endorsement of Huawei from their perspective.”

What we do know is that the carriers in Europe and the carriers in the Middle East have already spoken on Huawei’s 5G. 28 European carriers have signed commercial contracts for 5G, 11 have signed contracts in the Middle East. That is a public commitment and endorsement of Huawei from their perspective.”

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