Honor has a problem. Will it end up on the black list as Huawei?

Chinese producers have a hard time. If their pasts are intertwined with Huawei, it’s like a red flag for a bull and the US authorities react to it. Now maybe it was Honor’s turn.

He is from China and knows Huawei

Technology flows are traveling not only from China to the rest of the world, but also vice versa. And for companies like Google, Microsoft or Qualcomm, it’s an important flow. For example, Chinese manufacturers buy technology for their hardware.

If the US authorities say that such an Honor, which is now in danger, is not a suitable and safe partner, a ban will come. And the ban will be reflected in that American companies will be banned from trading with those companies listed in the U.S. Commerce Department. Now, according to several sources, Honor is close to this ban.

The fact that his former parent company, Huawei, is on the list also plays a negative role in this card for this Chinese company. So far, the decision is to fall, but paradoxically, the two internal US authorities (the Pentagon and the Department of Commerce) are opposed. If no agreement is reached between them, the final verdict on banning and leaving trade to the US president will fall.

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To maintain business with American companies, it is important that Honor doesn’t even sell its products in the USwhich is the difference compared to Huawei. And the second important element of decision-making lies in the nature of production, because it was Huawei that finally fell on telecommunications equipment, which Honor also does not offer. This could save the Chinese Honor and leave it in the game. Huawei got rid of its subsidiary in November 2020 and the goal was just to provide space for full involvement in business transactions with the US without being burdened by the black list on which Huawei found itself.

Honor is doing unusually well after breaking away from Huaweibecause he regained his Android license, which was revoked during the reign of Huawei. And they came new contracts with Qualcomm or Intel, what are American companies. Therefore, if the black scenario came true and Honor went blacklisted, these business relationships would be severed. It is not clear exactly when the decision was born, and the debate and struggle between the US institutions continues. However, this would not necessarily have a direct impact on the European market.