U.S Commerce Department blacklisted Huawei along with 68 subsidiaries as they apparently pose a threat to national security. American businesses such as Google, Intel, and Qualcomm have since relinquished all business activity with the Chinese tech firm as a result. This has affected Huawei’s business drastically and has severely wounded their global reputation.
Huawei has stumbled onto yet another problem – how are they going to communicate with their own employees in the U.S? Huawei has told their Chinese workers to cease business meetings with their U.S connections. They’re also sending home American employees active in R&D functions in Shenzhen HQ. Huawei’s Chief Strategy Architect, Dang Wenshuan, said that the firm has additionally restricted basic communication between their Chinese and American employees. The topics discussed in their own facility between the employees and overseas visitors is also being restrained: no talk related to technology is allowed. Wenshuan says they’re simply trying to make sure that they abide to the new law. Why export restriction justifies internal communications interference within the firm is debatable. This could just be an effort displayed to the U.S to suggest that American citizens are also suffering the consequences of the new policy.
The end to the trade war is nowhere in sight as China has now said that they will be constructing their own list of “unreliable” companies. Spokesperson for the Chinese Commerce Ministry, Gao Feng, says that they will form an “entity list” constituted of foreign firms that have halted business with Chinese companies. Local media quoted Feng, “Foreign enterprises, organisations, or individuals that do not comply with market rules, deviate from a contract’s spirit or impose blockades or stop supplies to Chinese enterprises for non-commercial purposes, and seriously damage the legitimate rights and interests of Chinese enterprises, will be included on a list of ‘unreliable entities'”.