Huawei Chairman talks about the impact of the US blacklist on East Tech West

The US decision to let US companies continue to do business with Huawei would have little impact on the Chinese technology company, according to a senior executive at Huawei.

Huawei is able to ship its products to customers without relying on US parts, Chairman Liang Hua told CNBC's Geoff Cutmore at the East Tech West Conference in Nansha District in Guangzhou, China on Monday.

Reuters reported that President Donald Trump's administration is in the process of issuing a two-week extension of a license that will allow US companies to continue to supply technology parts to Huawei.

"Whether it will be an expansion, given the real impact on Huawei, it will be very limited," Liang said in translated comments under a panel. "Our products can be shipped without dependence on US components and chips."

He said that if US companies were not allowed to sell to Huawei, it would "pose a major harm" to them. Huawei has the ability to ensure that all major products, including 5G base stations, can be manufactured and delivered to customers without relying on US parts, according to the chairman.

Huawei is the world's largest manufacturer of telecommunications equipment and one of the leading names in the evolution of 5G ̵[ads1]1; the next generation of high-speed mobile internet technology aimed at providing faster data rates and bandwidth to carry increasing levels of network traffic. It is seen as central to China's ambition to become a dominant player in 5G.

In May, the United States added Huawei and its affiliates to a blacklist, the so-called Entity List, saying the company was a security risk. As a result, US companies cannot sell or transfer technology to Huawei without a government-issued license. Washington later softened the stance and temporarily extended the license for US companies.

Despite pressure from the United States, Huawei claimed in October that they have signed more than 60 commercial 5G contracts with "leading global carriers."

No direct contact with the United States government

Huawei's chairman said the company had no direct communication with the US government. "We don't have a channel to talk to them either," Liang said.

Asked why he believed US government officials did not speak directly to Huawei, Liang said the US government does not know the technology company well enough. "The lack of communication is due to a lack of knowledge."

Even amid reports that the US government is working to extend the license for US firms to sell to Huawei, US Attorney William Barr recently wrote a letter to the Federal Communications Commission Chairman saying the company, along with Chinese rival ZTE, "did not can be trusted. "

Barr wrote in support of the telecom regulator's draft plans that would prevent Huawei and ZTE from selling goods to devices, such as regional and national broadband providers, using money from the FCC Universal Service Fund. He said the companies' role in the global 5G equipment market was a reason for caution.

Liang told CNBC that the move would "only harm broadband broadband providers in rural areas. It would only lead to a larger digital divide in the United States"

Despite the face of the US government, CEO Huawei Ren Zhengfei said in September that the company is willing to exclusively license its 5G technology to a US company to create a level playing field for competitors.

The license would include Huawie's proprietary 5G technology including source code, hardware, software, verification, production and production knowledge.

But on Monday, Liang said that so far, no US companies have contacted Huawei directly about the licenses. [19659018]

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