Chinese technology giant Huawei has canceled the planned launch of a new MateBook laptop at CES Asia Ars Technica reported on Wednesday that this week's 2019 show in Shanghai was due to widespread US sanctions against the company took place. According to CNBC, Richard Yu, CEO of the Huawei Consumer Division, confirmed that Huawei "can not deliver the PC" due to being included in the US entity list. Yu added that the matter was "unhappy" and that a future launch date "depends on how long the Entity List will be there. "As the information noted, laptops are only a small part of Huawei's $ 107 billion in revenue generated by the consumer electronics business. However, Huawei expects the PC business to become profitable in 2019.
Last month, Donald Trump's government issued an executive order on a national security emergency that prevented US companies from using technology from companies that pose a significant security risk. Huawei was a clear target of the order. Shortly after, the Commerce Department added Huawei and 70 affiliates to the so-called Entity List. The listing severely restricts Huawei's dealings with the US states. it can no longer buy US technology without US approval, which limits not only parts and components but all products that are believed to have been made with significant US input, such as software or technology.
One-day window in which Huawei has a "temporary general license" for its US business, "required to maintain and support existing and fully functional networks and devices, including software updates and patches , subject to legally binding contracts and agreements. "This expires on 19 August.
The drama surrounding Huawei has become the centerpiece of the ongoing trade war between the US and China, which has recently escalated to the point that the New York Times has recently reported there are "increasing signs" of a slowdown in global economic growth. The US has indicted Huawei for trafficking and fraud and is demanding the extradition of one of its high-level executives on allegations of bank fraud and Iran sanctions. US intelligence has warned (though with few publicly publicized evidence) that it has been secretly funded and that its telecommunications equipment could be intercepted by Chinese security and intelligence agencies.
Huawei has vigorously denied any involvement in espionage, arguing that the US government is merely trying to arm the company heavily because it beats the competition in the 5G race. She also sued the US government, claiming that she was unjustly selected by the federal government for special treatment. There is also the possibility that the Trump government will attack Huawei, one of the crown jewels of the Chinese technology industry, to put pressure on the trade war, but if that is the case, China threatens its own retaliation against US companies.
Huawei, according to Evercore estimates cited by CNBC, buys semiconductors worth about $ 20 billion a year, much of it from American companies. According to Ars Technica, Intel and ARM have recently taken measures to distance themselves from Huawei. Qualcomm and Broadcom, the main chip makers, have done the same thing.
Huawei's smartphone business designs its own processors and does not seem to be affected yet, CNBC noted, but it may lose access to Google's Android operating system after the 90-day license expires and the company uses the US Technology elsewhere in its cell phones. (Google has warned that Huawei's request to rapidly develop and implement a Slapdash version of Android based on the open source version has its own security risks.)
Ars Technica also has an article in the Chinese National Gazette Global Times announced. That denied the news of the delay of the MateBook.
"Huawei will launch a new laptop product in July with different models and configurations compared to previous series such as the MateBook and HonorBook, a source close to the Global Times," the newspaper wrote. "… The new laptop will be equipped with the Windows operating system, the source said, as opposed to rumors about the cessation of cooperation with Huawei by Microsoft."
The Global Times Source "refuted reports that Huawei had discontinued laptop production because of the export control imposed by the Trump government in the escalating trade war, she wrote, adding that" industry leaders "insist their perseverance had called "inspiring move".