Future of companies that don’t conform to the Huawei ban

Gadgets, News, Software

Over a previous couple of weeks, almost every partner Huawei had, including ARM, Google, and Corning has been lost courtesy of the U.S. trade ban. Consequently, the phone making firm has fallen into an unparalleled calamity. However, some chief partners are appearing silent, most significantly Microsoft. Microsoft has failed to publish a formal statement regarding the ban, but it has removed Huawei laptops from its website. This did indicate some sort of removal of services, but we are still unclear how it plans to deal with the ban in the longer run.

Microsoft is among Huawei’s greatest software partners, certifying and maintaining Windows on numerous Huawei laptops which have to be certified and updated by the company directly. It is probable that Microsoft’s silence is simply due to how sensitive the matter is, but it does make one wonder the sort of consequences Microsoft, or any firm, would face if they choose to continue being in business with Huawei and disobeys the order of Commerce.

Almost everyone in the industry is of the idea that Microsoft will take the same road as taken by Google, Corning, and the others, simply because they do not have the liberty to do anything else. There are a number of punishments set for firms that fail to obey export bans, starting from civil fines to denial orders that place restrictions on what the sentenced company can export. All of these are overseen by committed Export Enforcement detectives. in case of very blatant violations, criminal penalties can also be enforced. An example was the case where a man from New Jersey was sentenced on charges of conspiracy for his export of arms to Ukraine. But having seen how much Microsoft’s business depends largely on the govt. and foreign contracts, the company would undergo numerous losses before the risk of imprisonment is even considered.