Huawei requests access to smartphone market limited by the US Government
Wed 29 Aug 2018
Huawei has put forward a request to the U.S. Federal Trade Commission (FTC) for a hearing to oppose the brand’s ban in the American telecom market.
Currently one of the largest telecommunication companies in the world as well as being the world’s largest telecoms equipment producer, Huawei has recently debuted its newest 5G mobile phone.
Shenzen-based Huawei alleges that it is being restricted from seeking out business opportunities and has been openly speaking out about unfair targeting by the U.S. government due to security concerns that it says are “unnecessary”.
In its August filing, Huawei said: “Open competition promotes both innovation and investment. Unfortunately, competition in the U.S. telecommunications market has not been fully open for a long time.”
Huawei added that “certain other foreign entities have faced, and continue to face, regulatory intervention that has inhibited their ability to compete on merit.”
Huawei provided six examples, one in 2010 and a further five in 2018, of government action that significantly reduced or completely stopped U.S. sales of Huawei technology.
In August the Federal Communications Communications moved to bar U.S. carriers from using Federal funds to purchase Huawei networking equipment.
Huawei remarked that these actions have restricted its ability to compete in the market and restricted the ability of others.
“As these comments will make clear, government interference that restricts competition results in significant costs to consumers in the form of higher prices, lower quality, reduced investment, and lower incentives to innovate.”
The FTC hearings begin in September which is when Huawei can bring any further documented evidence to back up its argument as well as explore pending issues of consumer protection and the damages in competitive markets.
Huawei in its 65-page filings states that there is a “strong need for the FTC to provide Congress and the FCC with its expert economic analysis. The FTC is uniquely positioned to help prevent proposed restrictive regulations that would unnecessarily limit consumer choice and create market inefficiencies.”
Huawei is not the only Asian brand feeling these unfair measures. Fellow Chinese company ZTE Corp. has been under American scrutiny for its technology that is widely believed to promote spying.
Recently, Huawei and ZTE Corp were informed by Australia that they were excluded from building on the country’s 5G infrastructure. In July, the U.S. Commerce Department lifted a ban on American firms selling products to ZTE following a change in management and a penalty charge of over $1.4 billion.
The removal of the ZTE ban was a demand by China’s government which is facing escalating tension between the American economy and China’s growing economy. President Donald Trump has spoken openly of wanting to shrink the goods deficit with China to $375 billion.
The ban by the U.S. government could spread to South Korea in the coming months with Japan also considering a ban on Chinese network technology. Japanese business publications Sankei Shumbun reported that this move was to align Japan with the U.S. and Australia though Huawei have dismissed these worries as “unsubstantiated rumour, and not factual.”
Huawei was founded in 1988 by former Chinese army engineer Ren Zhengfei and has reiterated that the company is private and owned solely by employees.