Published: Mon, July 15, 2019
Markets | By Otis Pena

Huawei to cut jobs in US amid blacklist, US-China trade dispute

Huawei to cut jobs in US amid blacklist, US-China trade dispute

Some employees have already been notified of their dismissal, while more planned job cuts could be announced soon, the Journal reports.

As part of the ensuing trade war between the U.S. and China, the USA issued an executive order in May which authorized the Commerce Secretary to prevent United States companies from trading with entities designated a threat to national security.

Huawei is stated to have about 1,500 employs in the USA who mainly sell equipment to rural wireless carriers.

Tensions between the US and the Chinese tech giant have escalated since Huawei's Chief Financial Officer Meng Wanzhou, the daughter of the company's founder, was arrested in Vancouver, Canada in December at the request of USA authorities.

Huawei was added to a Commerce Department list in May that prohibits USA companies from supplying it with new American-made goods and services unless they obtain licenses that will likely be denied.

While the Administration insisted that no specific country or company would be singled out with the order, it came as the USA ramped up its trade war against China.

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Huawei Technologies Co is reportedly planning extensive layoffs in the United States, two months after the Trump Administration effectively blocked the Chinese telecom giant from the American market.

Trump's recent efforts to ease restrictions on the Chinese company could move forward quickly. Some U.S. chipmakers sales to Huawei may not need licenses because their products could be beyond the scope of United States export controls since many are manufactured overseas with few USA components. USA companies will need to apply for a license to sell to the firm.

Huawei did not immediately respond to a request for comment.

Suppliers want to be allowed to provide customer service support for chips they build and sell overseas, or the approval to ship new American-made equipment to Huawei and its subsidiaries around the world.

One producer's consultant was informed by the senior USA official that licenses may very well be granted in two to 4 weeks on the convention on Thursday. It additionally has launched a lobbying effort to steer US allies to maintain Huawei out of next-generation 5G telecommunications infrastructure, citing considerations the corporate might spy on clients.

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