Donald Trump’s departure from the U.S. presidency has not reduced Huawei’s problems with the U.S. government. Joe Biden even imposed even more limits on the Chinese giant’s suppliers. Now, the company’s senior vice president, Vincent Peng, has written an open letter asking for a conversation with the new US representative.
Peng wrote Biden in an opinion column on the Nikkei Asia website, and took the opportunity to explain, from his point of view, what American restrictions can do to the company. The text begins by reminding that now in May it completed two years that the Trump administration announced the inclusion of Huawei in the dirty list of companies that cannot do business with American companies.
“This restriction was followed by others, including a move last year to prevent Huawei from buying boards from the world’s largest semiconductor manufacturer,” explained Peng, citing Taiwan Semiconductor Manufacturing Co. (TSMC), which despite not being an American , uses machinery from US companies on its production line.
“The American government took these actions because it believes that, as a Chinese company, Huawei could be forced to initiate cyber attacks on American telecommunications networks, in addition to providing Beijing with the possibility of spying in the United States,” said the executive.
In fact, there is a great deal of concern, at least in the official speech, regarding the security of telecommunications networks in the United States, and some European countries have even shown the same fear and have even banned Huawei from providing equipment for 5G and other networks.
Last year, there were attacks against US government agencies and also against private companies, such as Microsoft Exchange and IT company SolarWinds. This year, a ransomware attack would have closed the largest fuel pipeline in the United States for several days, as Peng recalls in his text.
“If Biden’s executive order leads the US government to adopt a more fact-based approach to cybersecurity, that will be very good,” said the Huawei executive. “In fact, the request could benefit both the United States and China, if combined with American acceptance to renew global competition, instead of following the path of protectionism,” he noted.
Peng believes that competition is the best way, as it allows “American and Chinese companies to continue on a well-trodden path that has strengthened their interconnected economies in the last decade”. However, if the Biden government opts for an approach similar to that of its predecessor, and “allow competition only when it aligns with US political goals, the global economy will extend its headlong rush towards economic and technological decoupling.”
Separating the production chains of the two countries could cause huge losses to Chinese companies, but it would also impact American companies in the long run, with an estimated loss in GDP of US $ 190 billion, according to a calculation by the American research firm The Rhodium Group .
“It will also hurt the leadership of American companies in the semiconductor and other technologies sector,” warned Peng, who justified possible needs for cuts in research and development due to the drop in revenues.
The change in attitude, therefore, is well regarded by the Huawei executive, who expects openness to dialogue with the Biden administration. Peng says the Chinese company agrees to submit to stricter controls to guarantee the company’s business with American companies.
“We are open to discussing anything, including releasing Huawei equipment for independent testing, or even licensing our fifth generation technologies, 5G, to an American company or consortium,” said Peng. According to him, the Chinese giant is even willing to include 5G software source code, in addition to design projects and production technologies, network planning and testing.
For that, President Joe Biden just needs to accept a conversation with Huawei’s high command. Peng says American companies have a lot to gain from doing business with the company.
The fact that Xiaomi has managed to get rid of the list of prohibited entities from trading with American companies and investors may be a good sign for Huawei, after all. Your turn, Joe Biden.
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