Microsoft – Huawei Ties to Boost After Export of Mass Market Software 

Recent reports claim that the US government has allowed Microsoft Corporation to export software to Huawei Technologies. Speaking to Reuters via email, the former firms’ spokesman stated, “On November 20, the U.S. Department of Commerce granted Microsoft’s request for a license to export mass-market software to Huawei. We appreciate the Department’s action in response to our request.”

The easing relations between the US and China enabled US President Donald Trump to permit several suppliers to restart sales with the Chinese telecommunications giant. Being on a trade blacklist due to security concerns for past six months had led to significant drop in the sales of Huawei.

As per the Commerce Department, the allowance to export mass-market software from Microsoft will expand the supplier base of the firm giving Huawei some hope of making a comeback in the industry where it once made billions of dollars’ worth of goods.

Huawei postponed the launch of a new Windows-powered laptop, Matebook X Pro, early in 2019 and for a brief period, Microsoft ceased selling it at its stores after its launch.  The strengthened ties between the two will be helpful for Microsoft’s Azure, a cloud computing service as they together operate a hybrid cloud solution for Microsoft Azure stack using Huawei servers certified by Microsoft.

However, bans on components from any US based companies like Intel could still complicate the sales of Huawei laptops. The new mass-market software will ease prior issues related to stockpiling Windows and Office licenses. Thereafter, we might see more Windows-powered Huawei laptops.

Meanwhile, Huawei Technologies is trying to shift its dependence away from the US which is its biggest supplier. As per the comments by Chairman Liang Hua on November 21, the parts procured from Japanese companies make a total of 1.1 trillion yen (US$10 billion) in 2019.

Liang affirms that the expected cooperation and expansion with Japan is directed to develop next-generation technologies that will improve future opportunities. In a briefing transcript verified by Huawei, “Japan is a very important market for Huawei and plays an important role in the supply chain.” As per a recent report by Oxford Economics, Huawei created 46,000 jobs in Japan in 2018.

Ling Hua added that free trade was an “irreversible trend” and the world cannot be divided like the trade blacklist tried to. However, the past bans on Huawei have already tampered the company’s market share and deeply affected its economic growth.