Huawei replaced 13,000 components in its products due to US sanctions
Chinese company Huawei has replaced 13,000 components in its products due to US sanctions, CEO Ren Zhengfei said. This is reported by Reuters with reference to the transcript of his speech, published by Shanghai Zhao Tong University.
In addition to replacing components, Huawei has redesigned 4,000 printed circuit boards over the past three years, Zhengfei said, adding that their production has already “stabilized.”
According to him, in 2022 the company invested $23.8 billion in research and development, and plans to increase investments in them in the future “as profitability improves.” The head of the corporation said that in 2022, Huawei created its own enterprise resource planning system called MetaERP, which will help carry out core business functions, including finance, supply chain and manufacturing operations.
Huawei’s problems began against the backdrop of a trade war with China unleashed by former US President Donald Trump in 2018. In January 2019, two criminal cases were opened in the United States against Huawei. FBI chief Christopher Ray then spoke of “dishonest business practices that run counter to economic principles,” and Acting U.S. Attorney General Matthew Whitaker spoke of 23 counts against Huawei and its CFO Meng Wanzhou, including violating sanctions against Iran. Meng, the daughter of Huawei founder Ren Zhengfei, was under house arrest in Canada at the request of the United States from late 2018 to 2021, after which she was released to her homeland as part of a deal with the US Department of Justice.
On August 17, 2020, the US Department of Commerce restricted 38 Huawei subsidiaries from accessing products made using American technologies and software. In July 2022, the FBI suspected a Chinese company of possible theft of data on the country’s nuclear arsenal, and in November the United States banned the sale of telecom equipment manufactured by Huawei.
On January 31, Reuters and Bloomberg reported that the US Department of Commerce warned US companies that it would no longer issue licenses that they previously needed to obtain to sell Huawei technology. Officially, the ban may be approved in May 2023.