Huawei Stocks Took A Dive After The US Blacklisted Huawei & Affiliates

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The statement comes shortly after Huawei's chipset subsidiary, HiSilicon, said that it has a "backup plan" and is ready to switch to its independently-developed chips to mitigate the US' measures. Chinese state-run media Yicai Global reported in November 2018 that Huawei has 92 core suppliers, 36 percent of which are USA companies.

Huawei Technologies' founder and chief executive Ren Zhengfei said on Saturday that the growth of the Chinese tech giant "may slow, but only slightly" due to the USA restrictions.

The Department of Commerce, on the other hand, has alleged that Huawei is taking part in activities that are a threat to the US national security or foreign policy interest.

This means Huawei is blocked from buying parts and components from American firms without approval from the USA government.

China struck a more aggressive tone in its trade war with the United States on Friday, suggesting a resumption of talks between the world's two largest economies would be meaningless unless Washington changed course.

"We estimate that the optical communications equipment and base station sub-sectors within the networking sector would suffer a decline in sales of 10 to 30 percent, followed by handsets (10 to 20 percent), PCBs (10 to 15 percent) and semiconductors (up to 10 percent)", Wang said.

Firms like Finisar, which is being bought by II-VI Inc., and Lumentum have put decades of work into being able to make large quantities of lasers, said Philip Gadd, a retired chip executive who once ran Intel's silicon photonics division.

He said that Huawei's 5G equipment is cheaper, for sure, and the United States could use products from other vendors but are usually of higher cost. "A lot of the [U.S. government] restrictions have come too late".

"Today is the choice of history". "Whatever foreigners sanction us, we make things ourselves!" one wrote.

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She concluded the letter by writing: 'Heroes only show their true power while facing towering waves.

Huawei is on a trade blacklist after the U.S. Department of Commerce added the Chinese technologies firm and 68 affiliates in over two dozen countries on the Entity List.

In notice published Thursday, the Commerce Department's Bureau of Industry and Security said the USA was adding Huawei's affiliated companies around the world because they "pose a significant risk of involvement in activities contrary to the national security or foreign policy interests of the United States".

Huawei created a backup plan many years ago to prepare for a worst case scenario when they could no longer obtain advanced US chips and technologies, according to He Tingbo (left), the President of Huawei's chip arm HiSilicon.

Huawei sources a number of components used in the manufacturing of its handsets from these companies.

Huawei is asking its top Asian chipmakers to maintain deliveries after Washington made a decision to curb the telecom giant's access to American technology, the Nikkei reported on Friday, citing sources familiar with the matter.

Huawei will be "fine" even if it can't buy chips from U.S. suppliers, as "we have already been preparing for this", Ren said, according to Nikkei. That compares with an estimated $21 billon worth of chips that Huawei acquired from outside vendors.

He emphasized that Huawei had strengthened its production of parts or procurement of parts from companies in countries other than the United States. The spokesperson declined to give details.

USA lawmakers have long feared that the firm's equipment could be used to spy on Americans, and Democrats and Republicans lined up in support of the Trump administration's move.

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