Huawei could evade US sanctions

After the government of The United States will eliminate from the list and remove the products from Huawei of its infrastructure, the company has, in fact, stopped any kind of trade with the United States, however the company may have found a solution to circumvent that country’s sanctions by establishing its own factories.

Stay with us so we know everything that happens between the factory Chinese technology and their attempts to regain a place in the US market, as well as the difficulties they face in achieving their goal.

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The CIA’s findings are cornering Huawei

In 2019 the CIA (CIA) reported that the Chinese government was tasked with founding Huawei and, of course, allowed the company to spy on and monitor its consumers.

For those who understand the subject, this is a bit ironic considering the continuous and flagrant privacy violations suffered by the US government around the world.

Around the same date, the National Defense Authorization Act went into effect, banning US government agencies from using products developed by Huawei and its smaller competitor. ZTE.

Furthermore, the bans implemented limited the actions that could be taken Huawei to source semiconductors created in the United States and other manufacturers of necessary materials, involved in the development of mobile devices in the technology sector.

We will then give information on the perhaps brilliant idea of ​​the Chinese government to reverse the situation.

Huawei funds a manufacturing company to avoid sanctions

As mentioned by sources of BloombergChina’s macro technology company would now support an emerging company that requires manufacturing facility equipment for the aforementioned semiconductors.

Apparently, the new semiconductor plant called Pengxinwei IC Manufacturing Coknown as PXWIt is operated by Huawei representatives and will be built close to the company headquarters, as it is expected to be the plant’s largest customer, thus purchasing most, if not all of the company’s production.

Huawei stuck in the past

If this strategy were to prove successful, it would allow Huawei to get back on its feet and start producing devices again, however it remains to be seen whether PXW would violate U.S.-imposed trade sanctions by supplying Huawei, as this could limit the equipment the company can purchase.

Everything will possibly end up reduced to a long legal debate, where it is studied whether this method could found legal gaps in the framework of American sanctions on Huawei.

Furthermore, it should be noted that the first products of the company, whose launch is expected in 2025, will be with 28 nanometer technology, leaving the plant to be supplied only with obsolete equipment that are 6 or more generations behind.

Huawei has a hard time finding allies

Given the circumstances and allegations, plus the respective evidence against the Huawei company, it would be difficult for any company to attempt to affiliate and forge business ties with this organization.

Some of the US restrictions may also extend to this new company under the name PXWthus preventing it from having a respective take-off and departure in the commercial area.

The legal team of the Chinese company must take all the cards in their power to prevent their idea from being blocked before they can put it into practice.

As such, it appears that these sanctions will leave Huawei’s manufacturing against a rock and a shelter, thus keeping its devices locked in another era, thanks to the antiquated semiconductors the company can currently supply.

The entire theater is part of a widespread commercial conflict between China and the United States where national security has been used for several years as a pretext to limit the introduction of Huawei devices in American territory.