Media Statement on the U.S. Department of Commerce’s Modification of the Direct Product Rule Regarding Huawei

Huawei strongly opposes the US Department of Commerce's direct product rule changes that target Huawei only. Since being included in the Entity List by the US government on May 16, 2019, Huawei has always been committed to complying with applicable laws and regulations, fulfilling its contractual obligations with customers and suppliers, and struggling to survive and move forward, despite the unsustainable acquisition of a large number of industrial technology elements.

However, in order to further curb Huawei's development, the US government has ignored the concerns of many industry associations and companies and expanded and modified the direct product rules without any bottom line. The modified rules are arrogant and have industrial destructive power. Under this rule, the expansion, maintenance and continuous operation of the hundreds of billions of dollars of networks built using Huawei products in more than 170 countries around the world will be impacted, and the information communications of more than 3 billion people using Huawei products and services will also be affected. In order to suppress advanced companies in other countries, the US government has disregarded the rights and interests of Huawei's global customers and consumers, which is contradictory to its rhetoric of protecting network security.

This rule change affects not only Huawei, but also related industries around the world. In the long run, the trust foundation of global cooperation in industries such as chips will be destroyed, and conflicts and losses within the industry will be further intensified. The United States uses its technological advantages to suppress foreign companies, which will inevitably weaken the confidence of foreign companies in using American technology elements, and ultimately hurt the interests of the United States itself.

Huawei is conducting a comprehensive assessment of this incident and expects that our business will inevitably be affected. We will do our best to find a solution and hope that customers and suppliers will work with Huawei to eliminate the adverse effects of this discriminatory rule.