Huawei Surviving Amid Its Placement On The "Entity List"
Huawei has survived, for now, with its placement on the "entity list," as the company seems to be operating fully without its market in the U.S., according to The Economist.
Huawei is the largest supplier of mobile-network equipment in the world. Individuals in American believe that the company could leverage its status to spy on behalf of the communist party in Beijing.
U.S. Commerce Secretary Wilbur Ross stated that he was, "genuinely frightened" by Huawei and its potential to spy for the Chinese government.
As a result of the worry, in May the Commerce Department placed Huawei on its "entity list" preventing the company from doing business with any American firms. Analysts were bearish when they forecasted the outcome this move would have on the company, but they were wrong.
It appears that Huawei is surviving its placement on the entity list. In October, the company announced that its revenue had increased 24 percent year-on-year and that it had over 60 contracts to install zippy 5G networks around the globe.
Huawei being placed on the Commerce Department's entity list has not had a serious effect on the company, as its revenue increased in 2019.