Huawei’s Planned Layoffs In US Logical, Others May Do Alike Amid Trump’s Unpredictability

MOSCOW (UrduPoint News / Sputnik – ) Chinese telecommunications giant Huawei’s reported plans to cut jobs in its US-based research arm are not surprising considering US President Donald Trump’s unpredictable and constantly changing economic policies that may see other foreign companies following suit and limiting their operations in the United States, experts told Sputnik.Earlier in the week, the Wall Street Journal reported that Huawei is planning layoffs at its US-based research-and-development subsidiary, Futurewei Technologies Inc., which employs nearly 850 people. Huawei US headquarters has not responded to Sputnik’s request to confirm the reports so far.

This comes after Trump pledged in late June that the United States would allow its companies to sell their equipment to Huawei if this did not threaten the US national security.

Yet, it appears that little has been done to improve the position of the Chinese tech giant that fell victim to the US-China trade wars, Dr. Shi Yinhong, the director of the Center for American Studies at the Renmin University of China, told Sputnik.

“I don’t think that up to now the implementation [of restrictions on Huawei] by US different branches of administrations is compatible with Trump’s promise … The relaxation is very little,” Shi said.

The expert suggested that the company’s plans for job cuts in the United States were a reflection of its “realistic assessment” of rather dim prospects for any substantial improvements or relaxation of pressure in the foreseeable future.

“Huawei generally, I guess, has quite a realistic assessment of the situation … I think that Huawei still thinks that the situation is quite serious and American restrictions against Huawei will not fundamentally change … The general trend is that Huawei’s situation in the US market and some other US allies’ markets will continue to deteriorate,” Shi said.

Richard Anderson Falk, the Albert G. Milbank Professor Emeritus of International Law at Princeton University, echoed the Chinese expert’s views, pointing out to the constantly changing policies of the US leadership.

“Nothing that Trump does today can be trusted as he might do the opposite tomorrow. As business dislikes uncertainty with respect to the regulatory atmosphere, it is not surprising that this Trump pledge at the G20 meeting has not satisfied the Huawei leadership,” Falk said in his comments to Sputnik.

The expert underlined that even partial delisting of Huawei on the US blacklist was hardly sufficient for the Chinese tech giant, while other foreign businesses might also feel “uncomfortable” in the United States amid the uncertainty surrounding US trade and investment policy.

“In this period the blacklisting of companies will have a negative impact on the US economy and likely lead to the loss of jobs. Not only Huawei but other foreign companies will likely limit their US operations as long as the uncertainty factor persists, which effectively means as long as Trump remains president,” he said.

The United States and several other nations have accused Huawei of spying on behalf of the Chinese government through its devices. US allies, including Australia, Japan and New Zealand, also banned the company from participating in government contracts due to security concerns. Huawei has repeatedly refuted all the accusations.

In May, the US Commerce Department blacklisted Huawei and 68 of its non-US affiliates, banning them from importing US hardware amid a long-ongoing trade dispute between the two countries. Several American companies have suspended business ties with Huawei, including Google, which has barred the world’s biggest phone maker from access to certain Android components