Microsoft: Proposed restrictions on Huawei could thwart U.S. interests

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From footwear giants to the tech behemoths, industries across the U.S. are urging the Trump Administration to remove certain restrictions and end trade war with China.

After 173 shoe companies signed an open letter to the president on May 21, and posted on the Footwear Distribution and Retailers of America's website, tech companies like Microsoft, General Electric Co.(GE), and Alphabet Inc—the parent company of Google have expressed their concerns over the export controls being considered by Washington.

Footwear Distributors and Retailers CEO Matt Priest's response on Fox Business regarding the potential impact of tariffs on footwear makers, retailers and consumers.

They said that could actually impede their companies from competing in lucrative markets while reducing America's capacity to innovate.

According to Bloomberg, in a written submission to the Department of Commerce, Microsoft warned that the proposed restrictions risked isolating the U.S. from international research collaborations and "could thwart U.S. interests."

The company has been asked to suspend supplies of the Windows operating system for many Huawei devices. Bob O'Donnell of the consultancy Technalysis Research told the media that any ban would almost certainly affect Microsoft. "Any version of Windows comes from Microsoft since there is no open-source version."

Huawei's MateBook powered by Microsoft software. /VCG Photo

GE also cautioned in its own submission. "Artificial intelligence is a very broad concept, defined too broadly export controls could sweep up things like medical imaging where algorithms are being used to scan for diseases and in toys," it said.

CEO of the Washington-based security software company Evanna Hu told Bloomberg that "The more that we continually conflate economic warfare with national security interests, then we start to look at everything as national security."

"When you have a hammer, everything looks like a nail."

One of the main reasons that the U.S. government hit against Huawei is its 5G technology. As the pillar of the next wave industrial revolution, 5G has the ability to support a wealth of cutting-edge technologies from connecting the world to applications in almost every industry.

By cutting off the Chinese tech giant, the U.S. will only slow the expansion of 5G, the Bloomberg report said, citing Huawei was leading in supplying 5G infrastructure globally.

In a report published this month, researchers at the Information Technology and Innovation Foundation (ITIF) warned that a crackdown on U.S. tech exports would put as much as 56 billion U.S. dollars in exports and 74,000 jobs at risk over five years.

Screenshot of the report from ITIF

They also warned that in trying to force repatriation of supply chains, the Trump administration risked undermining the very economic dynamism it is trying to promote.