USA vs China Phone Wars Round 10

USA VS China Phone Wars Round 10

In a Huawei VS Trump or USA VS China war, and war it surely is, the latest development concerns those who really suffer in any conflict on any scale – the people. Online reports are coming in about Huawei’s planned layoffs reaching massive proportions and it is all due to the reduced amount of work now needed. The Chinese company is calling out on USA actions calling the export ban “unjust and unfair” and some staggering figures are beginning to emerge.

In our last report, USA VS China Phone Wars Round 9, the seriousness of the situation was just getting dire and apparent. If you remember correctly, the Canadian government is still holding Meng Wanzhou under electronic surveillance on a US warrant. Meng is the daughter of the founder of Huawei and she is the Chief Financial Officer of the company. As a response, two Canadian citizens were immediately detained in China and charged with espionage. As the suffering and the damage escalates, we can only hope this conflict will soon end and those unfortunate people given back their freedom.

However, this war is claiming more casualties, as now Huawei will be forced to make massive budget cuts, which means laying off people. This particularly targets Chinese employees who work in the Futurewei Technologies. Futurewei is a subsidiary of Huawei, based in the USA, dealing in R&D, research & development, and currently employing about 850 people. Those people are soon to be unemployed, according to the Wall Street journal reports.

However, Huawei will reportedly give their employees a chance to return home and continue working within the company. Reports are saying that the dismissals have already begun, while their employer did not comment on this. However, Huawei did issue a statement about the entire ordeal and has called for lifting the Export Restriction, calling it “unjust and unfair”.

According to the chairman of Huawei, Liang Hua, Trump’s promise of allowing US companies to continue trading with Huawei to a certain degree has yet to bare any benefits. He is calling on Washington and demanding an entire removal of the security blacklist. USA accused the Chinese telecom giant company of espionage. Furthermore, they admittedly see it as a competitor to the US technology industry, which is where the real reason for this war seems to lie according to Ren Zhengfei, the founder of Huawei.

In these past few weeks, we’ve seen a ceasefire of sorts and the US government seemed to soften up a bit, promising lifts on the export ban. On June 29, a truce of sorts was reached as Trump announced: “U.S. companies can sell their equipment to Huawei. We’re talking about equipment where there’s no great national security problem with it”.

But, that statement was altered the very next day, according to online sources, leaving Huawei on the blacklist still. This has led to an entire chain of confusion, loss of profit in billions for both the US and Chinese companies, and hasn’t produced any positive effect. The espionage charges are, according to Liang, entirely unfounded, unfair, and wrong. It remains to be seen if there will ever be a successful, satisfactory resolution to this whole ordeal…

Do you want to know how it came to this? Check out the whole Phone War series!