Trump’s crackdown on Huawei puts US companies’ survival at risk, Microsoft warns
US tech major Microsoft is unhappy with US president Donald Trump’s push against China’s Huawei, claiming that such unfair and “un-American” treatment may hit indigenous companies hard, and Microsoft itself will not be spared.
The tech giant’s President Brad Smith has serious doubts over the grounds on which Huawei was added to the US infamous ‘Entity List’ effectively banning American companies from doing business with the Chinese behemoth. In an interview with Bloomberg Businessweek Smith said his company wants the Trump administration to shed more light on the matter to check if the move was not taken without “sound basis in fact, logic, and the rule of law.”
However, US regulators failed to give any plausible explanation as they simply claim to know much more than they reveal to the businessmen, according to the Microsoft official. He argues that the government must open up, so firms could decide for themselves.
While some US companies were granted a temporary reprieve to deal with Huawei and may continue sales unless they fall under the vague notion of a security threat, Smith says it hardly makes things easier for US producers.
“To tell a tech company that it can sell products, but not buy an operating system or chips, is like telling a hotel company that it can open its doors, but not put beds in its hotel rooms or food in its restaurant. Either way, you put the survival of that company at risk,” the Microsoft president explained.
The US Silicon Valley major not only fears losing a key client, as Huawei buys Microsoft software for its laptops, but also to lose its grip on the global technology market if the US proceeds with restrictions.
It was earlier reported that American companies, including Qualcomm, Intel and Microsoft, may lose up to $11 billion if they lose Huawei as a client. Given that their revenues are at stake, US hardware and software suppliers have already tried to lobby the US government to ease the ban on the Chinese firm.
Meanwhile, Huawei has been working to adapt to hostile US policies and has already announced the launch of its operating system Harmony OS, which can replace Google’s Android if it is cut off from US technologies. It is also believed to be bracing for the loss of access to the most popular Google apps, developing similar programs to replace them.
For more stories on economy & finance visit RT’s business section