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Huawei To Back Off US Market Amid Rising Tensions (nytimes.com)

Posted by BeauHD on from the reverse-course dept.

Huawei is reportedly going to give up on selling its products and services in the United States (Warning: source may be paywalled; alternative source) due to Washington's accusations that the company has ties to the Chinese government. The change in tactics comes a week after the company laid off five American employees, including its biggest American lobbyist. The New York Times reports: Huawei's tactics are changing as its business prospects in the United States have darkened considerably. On Tuesday, the Federal Communications Commission voted to proceed with a new rule that could effectively kill off what little business the company has in the United States. Although the proposed rule does not mention Huawei by name, it would block federally subsidized telecommunications carriers from using suppliers deemed to pose a risk to American national security. Huawei's latest moves suggest that it has accepted that its political battles in the United States are not ones it is likely to win. "Some things cannot change their course according to our wishes," Eric Xu, Huawei's deputy chairman, said at the company's annual meeting with analysts on Tuesday. "With some things, when you let them go, you actually feel more at ease."

4 of 91 comments (clear)

  1. Yeah... by Parker+Lewis · · Score: 4, Interesting

    "suppliers deemed to pose a risk to American national security" == "suppliers do not accept to sell products with NSA backdoors"

    1. Re:Yeah... by Anonymous Coward · · Score: 5, Interesting

      I don't think Huawei would have let this go so easily if that were the reason. They'd either have inserted the backdoor like presumably the other suppliers, or they'd have let the public know that the NSA wanted them to insert a backdoor into their products but that they refused to do so. I think it's more likely that some of Huawei's products contain PRC backdoors and that they aren't prepared (or legally able) to remove them.

  2. Re:Americans had better get used to paying more. by Anonymous Coward · · Score: 2, Interesting

    I think the American public is going to be in for a rude awakening about just how much of what they buy comes from China.

    Taiwan, South Korea, Malaysia, and The Philippines have got us covered.

  3. Re:Americans had better get used to paying more. by Howitzer86 · · Score: 1, Interesting

    If electronics become too expensive for the average consumer, we'll just keep what we have and buy used from the wealthier folks. Meanwhile, I hope the remaining manufacturers get the message and build things that last longer and are easier to repair.