Page 24 - aruba-today-20190518

A24 TECHNOLOGY
Saturday 18 May 2019
Economic sanctions on Huawei could backfire on U.S. firms

By FRANK BAJAK nomic harm to the Ameri-
AP Technology Writer can companies with which
The Trump administration’s Huawei does business, af-
decision to restrict all U.S. fect tens of thousands of
technology sales to Chi- American jobs, and dis-
nese telecommunications rupt the current collabora-
powerhouse Huawei for tion and mutual trust that
national security reasons exist on the global supply
doesn’t just up the ante in chain,” the company said.
the China trade war. Huawei is already the big-
It’s also bound to hurt U.S. gest global supplier of net-
suppliers and acceler- working equipment, and
ate Beijing’s drive toward Entner said it is poised to
greater technological in- overtake Samsung as the
dependence. No. 1 smartphone manu-
The White House issued an facturer. He said Huawei is
executive order Wednes- now apt to move toward
day apparently aimed at making all components do-
banning Huawei’s equip- mestically. China already
ment from U.S. telecom has a policy seeking tech-
networks and information nological independence
infrastructure. It then an- by 2025 and Entner said
nounced a more potent A woman walks past advertisement for Huawei smartphones in Beijing on Thursday, May 16, Huawei has its own mobile
and immediate sanction 2019. processors and chips.
that subjects the Chinese Associated Press The restrictions would also
company to strict export reversed should Huawei no com, Qualcomm and In- for comment. A Qual- bar Google from licensing
controls. longer be deemed “a sig- tel. Ironically, many of the comm spokeswoman said value-added components
The order took effect Thurs- nificant danger” to U.S. na- computer chips, memory the company had no com- and services of its Android
day and requires U.S. gov- tional security. and other components it ment. operating system, which
ernment approval for all The U.S. government has gets from U.S. companies He said they would have Google gives away for free
purchases of U.S. micro- long insisted that equip- are made in China, said “ripple effects through the to use on Huawei and other
chips, software and other ment from suppliers includ- Roger Entner, founder of entire global telecommu- smartphones.
components globally by ing Huawei poses an es- telecom research firm Re- nications network.” If Hua- Entner said Huawei would
Huawei and 68 affiliated pionage threat because it con Analytics. wei “can’t get the widget likely be forced to ship its
businesses. Huawei says is legally beholden to Chi- The company’s flagship or the part or the software smartphones outside Chi-
that amounted to $11 bil- na’s ruling party. But U.S. smartphone, the Mate 20 update to keep function- na with a stripped-down
lion in goods last year. officials have presented Pro , includes chips made ing, then those systems go Android version used in-
Commerce Secretary Wil- no evidence of any Hua- by Skyworks Solutions Inc. down,” said Wolf, a partner side China. That package
bur Ross said Thursday in wei equipment serving as and a wireless receiver at the Washington law firm is missing Google’s maps
an interview with Bloom- intentional conduits for es- made by Integrated De- Akin Gump. software and its Play Store,
berg TV that the sanctions pionage by Beijing. vice Technologies, both Huawei issued a statement from which users buy and
are “not really a part of About a third of Huawei’s U.S. companies. Thursday calling the move download apps, meaning
the trade negotiation” but suppliers are American in- Neither company respond- “in no one’s interest.” Google could lose reve-
added that they could be cluding chip makers Broad- ed immediately to requests “It will do significant eco- nue. q

Amazon takes top stake in UK

food delivery firm Deliveroo

rants, still operates in sev- company that owns Uber- to work. In May, Britain’s
eral U.S. cities. Deliveroo, Eats, fell 1.3%. Founded in High Court ruled that De-
whose Kangaroo logo is a 2013, Deliveroo has about liveroo riders do not in fact
common sight on scooters 60,000 riders delivering have the right to collective
and bicycles around Brit- food from some 80,000 res- bargaining, by which they
ain, said Friday that it raised taurants in 14 countries, in- negotiate pay, hours and
$575 million from a number cluding Australia, France vacation time as a group
of investors led by Amazon. and Germany. of employees rather than
The Seattle company will Like other so-called gig individually.
In this Tuesday, July 11, 2017 file photo, a Deliveroo logo is seen be Deliveroo’s largest in- economy companies, De- Deliveroo said the new in-
on a bicycle in London. vestor, but did not disclose liveroo has run into legal vestments will help it try
Associated Press how much of a stake Am- tussles over whether its rid- new operations, such as
LONDON (AP) — Amazon is business going in the United azon acquired. Amazon. ers count as employees delivery-only kitchens, in an
investing in British meal de- Kingdom, shutting it down com Inc. declined to com- and should get work ben- effort to expand its reach.
livery company Deliveroo, for good late last year. It ment Friday. With Amazon efits. “This is great news for the
giving the online shopping faced tough competition now on its side, shares of While some workers would tech and restaurant sec-
behemoth a larger stake in from Deliveroo, as well as Deliveroo’s competitors want the legal status of tors, and it will help to cre-
the fast-growing restaurant its other rivals in the country fell Friday. Just Eat, which employee, with more fixed ate jobs in all of the coun-
delivery business. such as Just Eat and Uber- trades on the London Stock hours and greater benefits, tries in which we operate,”
Amazon failed to get its Eats. Amazon’s service, Exchange, dropped 8%. others like the flexibility to said Will Shu, the founder
own restaurant delivery called Amazon Restau- And Uber, the ride-hailing decide when and how long and CEO of Deliveroo.q