Huawei's logo is displayed at their store in Vina del Mar, Chile, July 18, 2019.
Rodrigo Garrido | Reuters
U.S. President Donald Trump must decide on Monday whether to extend an interim agreement allowing Huawei to do business in the US – and Washington's decision is likely to be influenced by US technology firms, according to research firm International Data Corporation.
US Commerce Department blacklisted Chinese technology giant ̵
According to Reuters and the Wall Street Journal, the US will extend the license for another 90 days, which will allow Huawei to continue to buy parts from US companies.
"In my opinion, it's about the pressure US component suppliers put on the government instead of telling Huawei," Crawford Del Prette, president of IDC, told CNBC Box on Monday on CNBC.
Del Prete explained that Huawei's core product lines – including telecommunications equipment, servers, storage, networking equipment and even its smartphones – have "very, very sophisticated supply chains and rely on technology that has been around for a very, very long time. "Del Prette had no short-term alternative ways to access these advanced technologies without buying them from US companies.
Before the deadline, Trump told reporters Sunday that Huawei was a threat to national security." what will happen. I make a decision tomorrow, "Trump said of a possible license extension.
After Trump met with Chinese President Xi Jinping at the G20 summit in June, the two leaders agreed at the time Trump also said at the meeting that he would allow US companies to continue selling Huawei products.
Huawei is considered one of the leading names in the race to develop nascent 5G technology – the next generation is fast Ten mobile Internet, which is expected to be a major factor in the technology industry for years to come. But the company faces growing fears that its technology may allow China to spy on others through these high-speed mobile networks.
" I'm not able to say whether they are a threat or not, but I think the pressure is on Huawei to be able to say … "No, we are not a security threat," said Del Prette
Huawei has repeatedly denied that its products pose any risk.
Huawei is embroiled in a trade dispute between the US and China as the two sides compete for supremacy over 5G.
US-China trade fight
Earlier this month, Trump announced that the US would impose a 10% tax on an additional $ 300 billion of goods imported from China starting September 1. Some of these tariffs were subsequently delayed until December 15, in order to avoid the festive shopping period.
"I think what the US government is trying to avoid is that the consumer is feeling this in a significant way," Del Prette said.
He explained that these tariffs would have a direct impact, increasing the cost of imports and increasing the average sales price of the goods concerned. According to him, companies could struggle to satisfy seasonal demand for products if the levies breach the supply chain. This will leave US consumers dissatisfied if they cannot buy laptops, phones and other items of concern because they are not available.
"So we think the impact of extending these tariffs is really to ensure that we have a stable shopping season in the fall," Del Prette said. "This date of December 15 is no coincidence, in terms of the ability to ensure that the component supply chain is purified and consumers can access their products."