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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: 2, Disagree) by legont on Friday July 19 2019, @01:45AM

    by legont (4179) on Friday July 19 2019, @01:45AM (#868780)

    Trump is simply a businessman who usually gets what he wants, period. His track record of running the US as one of his businesses is so far almost perfect in this regard.

    One may or may not like his goals, but the one - grows above 3% - will get him reelected. With any luck he will trigger a wage inflation by 2020 and become a hero of Roosevelt scale.

    --
    "Wealth is the relentless enemy of understanding" - John Kenneth Galbraith.
    Starting Score:    1  point
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