If you keep pace with Huawei's recent efforts in the US market, you've probably heard of the big deal collapse between the Chinese OEM and AT & T . In the short term, this is certainly disappointing for anyone intending to see the new Mate 10 Pro and future Huawei devices on carrier contract deals. However, the problem and its potential implications go far beyond that.

On Thursday, when we officially heard about the canceled transaction, some US concerns were cited as an explanation. As it turned out, there was a full bill entitled HR 4747: Defending US Government Communications Act, which began on January 9, aiming to ban all US government agencies and branches from using carriers and service providers. use the hardware or any platform courtesy of Huawei and ZTE. To be more specific, the bill, which has already been proposed in the US Congress, attempts to blacklist companies using any of the following products:

  • Huawei Technologies Company or ZTE Corporation (or a subsidiary Telecommunications services provided or used by such entities
  • Telecommunications equipment or services produced by a body. English: or that the Chief Executive Officer reasonably considers as a unit owned or controlled

The bill was sponsored by Michael Conaway, member of the Texas Republican House, a person well known to many, for directing the ongoing investigation into Russia's alleged interference in the US election e. 19659007] But why is that important? It's not that Huawei's or ZTE's smartphone sales consist mainly of cell phones for US officials. However, both companies are big players in the field of telecommunications companies. It is more than likely that all major US carriers rely at least in part on the hardware and services provided by the pair. This means that such a large negative attitude towards them at government level will definitely have a negative impact on all other businesses. Case and point, the AT & T negotiations, were canceled in their final stages.

Still, even if we're sad that the Huawei Mate 10 Pro just missed the next AT & T deal booklet, it's hard to be confident. The newly proposed bill is no coincidence and builds on previous precedents, such as a ban on ZTE products for the US government in 2013, another proposal, the Pentagon on the purchase of equipment from Chinese or Russian telecommunications companies and a US-China Commission, the source Huawei, ZTE and others are: "directly under the leadership of the Communist Party of China …" and "shared with the Chinese state intimate and extensive knowledge of the foreign telecommunications systems with which it is involved."

All in all It seems pretty clear that US carriers will for the time being shy away from the two Chinese tech giants and any smartphone distribution businesses. As far as the big picture is concerned, it's too early to say so. In order to even vote, the newly proposed bill must be approved by the Committee on Oversight and Reform. Only then can it be handed over by both Houses of Congress and, if approved, to the President for final signing.

Last, but not least, to throw even more drama in the mix, the US Department of Commerce, is currently investigating the business of Huawei in Syria, Cuba, Iran and Sudan. ZTE was fined more than US $ 1 billion last year after violating US and Iran sanctions by sending products from the US to Iran and then lying to federal investigators.

Source 1 | Source 2



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