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posted by janrinok on Thursday July 18 2019, @04:07PM   Printer-friendly
from the going-toe-to-toe dept.

Huawei, the Chinese manufacturer targeted by a Trump administration trade ban, is expected to dismiss a substantial number of people in the US in the coming weeks.

The number of individuals affected remains unclear but the layoffs, at the telecoms kit maker's US R&D subsidiary, Futurewei Technologies, could affect hundreds of workers in California, Texas, and Washington, according to The Wall Street Journal. Futurewei currently employs more than 800 people in the US.

On May 16, the beleaguered manufacturer, along with 68 of its affiliates, was placed on the US Commerce Department's Entity List, which forbids companies subject to US law from doing business with the firm without special permission from the US government.

Four days later, Huawei was given a 90-day General License so that its customers have time to make deals with new suppliers. When the General License expires on August 19, the ban will go into effect unless circumstances change.

US officials believe Huawei cannot be trusted because the company cannot resist demands by the Chinese government to compromise its equipment to assist with state-sponsored spying. No public evidence of this has been presented.

[...] Layoffs would be consistent with the broader financial impact of the pending Huawei trade ban. In June, at an event at Huawei headquarters in Shenzhen, China, company founder and CEO Ren Zhengfei, predicted the telecom firm's revenue will reach only about $100bn in 2019 and 2020, about $30bn less than previously anticipated in the next two years. But he said the company will emerge stronger by 2021.


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  • (Score: 5, Insightful) by Snow on Thursday July 18 2019, @04:22PM (1 child)

    by Snow (1601) on Thursday July 18 2019, @04:22PM (#868553) Journal

    No point running offices in a country that you aren't allowed to operate in...

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  • (Score: 4, Informative) by ikanreed on Thursday July 18 2019, @04:55PM

    by ikanreed (3164) Subscriber Badge on Thursday July 18 2019, @04:55PM (#868575) Journal

    You're right. However, the international mega-corporation as was originally developed inside the US is an organism that evolves appendages that evade laws meant to constrain it.

    A good example is ExxonMobil, who has a subsidiary named SeaRiver whose whole duty is to run shipments in international waters so they can avoid liability for things like ExxonValdez happening again. Or maybe more applicably to this case, Mobil Processing Nigeria, a subsidiary founded specifically to circumvent Nigerian laws banning foreign corporations from owning and extracting national oil wealth.