Huawei claimed that attempts to restrict the Chinese tech giant from doing business stateside will cause the U.S. to fall behind in the development of next-generation mobile networks — and could raise “other serious legal issues.”
“If fully implemented, the Entity List would immediately deny Huawei access to key hardware and software suppliers for its mobile infrastructure and handset businesses,” Eurasia Group said in a note on Wednesday.
In addition, Huawei’s consumer business is now its biggest division by revenues and is seen as a key growth driver for the company. Any disruption to the consumer group could impact its overall business. “Even if — for whatever reason — Qualcomm can’t supply to Huawei, I’m sure MediaTek would be more than happy to pick up their business just given their expertise in low-end devices,” Bryan Ma, vice president of devices research at IDC, told CNBC.
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