But there doesn’t appear to be much the US government could do to realistically hurt the digital finance company. Unlike other Chinese tech firms that have drawn the ire of Washington, Ant does little business in the United States.
ZURICH (Reuters) – Chinese telecom giant Huawei is finding it harder to counter U.S. sanctions designed to choke off its access to semiconductors but can continue to serve European 5G network clients, a senior European executive told an Austrian newspaper.
The world’s biggest maker of mobile telecommunications equipment and smartphones was still “looking for a solution” to help millions of Huawei phone users after Google
was banned from providing technical support for new Huawei phone models using mobile operating system Android.
“Since the U.S. sanctions last year, U.S. manufacturers of semiconductors are no longer allowed to supply us so our previous U.S. partners can no longer work with us. Since August it has become even more difficult,” Abraham Liu, Huwaei’s vice-president for Europe, told the Kurier paper.
He said Washington was “blackmailing” chipmakers into shunning ties with Huawei, which denies U.S. allegations that Huawei equipment could be used by Beijing
The South Korean conglomerate said on Thursday that it expects to make an operating profit of roughly 12.3 trillion won ($10.6 billion) for the July-September quarter. That’s up 58% from the same period a year ago. The estimates also beat the 26% profit bump analysts polled by data provider Refinitiv had predicted.
Samsung said it expects sales for the third quarter will rise about 6% to 66 trillion won ($57 billion).
After more US sanctions have all-but-crippled the future of Huawei’s global networks business — and its efforts to become the dominant 5G provider — dollar signs are already materializing for its rivals.
At the crux of Huawei’s withdrawal is an annual $27 billion opportunity for its competitors — including Nokia, Ericsson and Samsung — to become the go-to providers of 5G and other telecommunication services to domestic carriers, says Ryan Koontz, an analyst at Rosenblatt Securities. “It’s a massive economic transition,” says Koontz. “It’s relatively urgent for these carriers to make the change.”
The multi-billion dollar market opportunity, which hinges on Huawei’s sales figures for the year ended September, will not evaporate overnight, Koontz says, but will likely be absorbed over the next three to four years.
GUANGZHOU, China — The U.S. government has reportedly imposed restrictions on exports to SMIC, China’s biggest chip manufacturer, a move that threatens Beijing’s push to become more self-reliant in one of the most critical areas of technology.
Suppliers for certain equipment to SMIC will need to apply for an export license, according