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Huawei President talks about US blacklisting influence on East Tech West

The US decision to allow US companies to continue doing business with Huawei would have little impact on the Chinese technology company, according to a senior executive at Huawei.

Huawei can ship its products to customers without relying on US parts, Chairman Liang Hua told CNBC's Geoff Cutmore at the East Tech West Conference in Nansha District in Guangzhou, China on Monday.

Reuters reported that President Donald Trump's administration is about to issue a two-week extension of a license that will allow US companies to continue to deliver technology parts to Huawei.

"Whether it is going to be an extension, in terms of its real impact on Huawei, it will be very limited," Liang said in translated comments under a panel. "Our products can be delivered without dependence on American components and chips."

He said that if American companies were not allowed to sell to Huawei, it would "do a major harm" to them. Huawei has the ability to ensure that all major products, including 5G base stations, can be manufactured and delivered to their customers without relying on US parts, according to the chairman.

Huawei is the world's largest manufacturer of telecommunications equipment and one of the leading names in the development of 5G ̵

1; the next generation of high-speed mobile internet technology that aims to provide faster data rates and more bandwidth to carry growing levels of web traffic. It is seen as central to China's ambitions to become a dominant player in 5G.

In May, the United States added Huawei and its affiliates to a blacklist, the so-called Entity List, saying the company was a security risk. As a result, US companies cannot sell or transfer technology to Huawei without a government-issued license. Washington later softened its stance and temporarily extended the license for US companies.

Despite pressure from the United States, Huawei claimed in October that it has signed more than 60 commercial 5G contracts with "leading global carriers."

No direct contact with the US government

Huawei's president said that the company has not had direct communication with the US government. "We also don't have a channel to talk to them," Liang said.

When asked why he thought US government officials did not speak directly to Huawei, Liang said that the US government does not know the technology company well enough. "The lack of communication is due to a lack of knowledge."

Even amid reports that the US government is working to extend the license for US companies to sell to Huawei, US Attorney William Barr recently wrote a letter to the Federal Communications Committee chairman saying that the company, along with Chinese rival ZTE, " can not trust. "

Barr wrote in support of the telecom regulator's draft plans that would prevent Huawei and ZTE from selling goods to devices, such as regional and rural broadband providers that use money from the FCC Universal Service Fund. He said that the role of companies in the global 5G equipment market was a reason for caution.

Liang told CNBC that the move "would only damage broadband network providers in these rural areas. It would only cause a greater digital divide in the United States"

Despite the face of the US government, Huawei CEO Ren Zhengfei said in September that the company is willing to exclusively licensing its 5G technology to a US company to create a level playing field for competitors.

The license would include Huawie's proprietary 5G technology including source code, hardware, software, verification, production and manufacturing knowledge.

But on Monday, Liang said that so far, no US company has contacted Huawei directly about the licenses. [19659018]
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