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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.
(Score: 4, Insightful) by Adam on Thursday July 18 2019, @05:20PM (5 children)
The thing I don't get with these reports is why the US Gov is targeting only Huawei - sure, there are claims of direct government involvement, but I'd be very surprised if any of the other Chinese electronics manufacturers would put up a fuss if asked to backdoor a product for their government.
(Score: 3, Interesting) by Anonymous Coward on Thursday July 18 2019, @05:44PM (4 children)
Most reasonable suspicion I have seen is that Huawei refused to put in the Five-Eyes backdoors.
(Score: 2, Informative) by Anonymous Coward on Thursday July 18 2019, @07:34PM (3 children)
More like when you can't beat them in capitalism, you beat them by cheating. That's the type of "free market" US has. As long as you are small, no ones cares. But if you get big enough, then you become a problem for the establishment.
(Score: 0) by Anonymous Coward on Thursday July 18 2019, @10:52PM (2 children)
That's the type of "free market" China has
Fixed that for ya. Their concept of IP is you invent it we make it and you can pound sand sucker.
(Score: 0) by Anonymous Coward on Thursday July 18 2019, @11:38PM
Are you refering to the invention of round corners? Or patenting the scrollbar?
(Score: 0) by Anonymous Coward on Friday July 19 2019, @01:56AM
It was not necessary for the capitalist class to do business with China. They chose to do business with China, sending manufacturing jobs overseas. Cry me a fucking river.