Tech giant Huawei had plans to compete with Apple in the race to become the world’s top tech company. Although the U.S. makes up a small portion of the company’s sale base, Huawei understood that to globalize its brand, there was a need to invest in the country.
With these ambitions, Huawei set its first research and development centers in Plano, Texas in 2001. A decade later, the company expanded and opened its Futurewei R&D headquarters in Santa, Clara in California to focus on next-generation innovations for their consumers.
However, contrary to their expectations the company started facing problems. The U.S. Intelligence Committee alleged that the tech giant posed danger to national security as well as user privacy – claims that Huawei denies to date.
As if that was not enough, the company was enlisted on United States export backlist early this year.
This backlisting has barred the company from buying supplies from top suppliers like Google, prevented Huawei from selling its telecom equipment to rural America and has also illegalized the transfer of intellectual property from Futurewei to Chinese HQs.
With all the hurdles presented by the blacklisting, the company has been forced to lay off some of its staff, close down branches and lose important partnerships from key universities.
Top universities such as MIT and Princeton have terminated their partnership with the company in compliance with to White House pressure campaign.
Having spent $500 million in investment on Futurewei in 2018, the tech-giant is hesitant to invest more fearing loss if the negotiations with the government officials fail to pull through.
The company has however announced that the challenges in the States have not stalled their progress. In fact, they say they’re busy focusing on important researches, primarily 6G technology, with likeminded partners in Canada.