Huawei can still make products with wifi. It's just that they don't get a say in setting any future standards due to the current membership restrictions.
This was even mentioned on the semi-official Huawei site:
"The SD Association and Wi-Fi Alliance authorities, which are responsible for maintaining their respective technological standards has now stepped back from Huawei citing the US restrictions.
The SD Association organization that sets memory card standards has told
that Huawei’s removal from the group was due to the US restrictions, proving that future Huawei phones won’t come under SD association standards.
“The use of SD cards on Huawei smartphone won’t be affected. Consumers can continue purchasing and using these products.” said a Huawei spokesperson.
In addition to the SD Association, Wi-Fi Alliance (WFA) that promotes Wi-Fi technology and certifies Wi-Fi products has temporarily restricted Huawei’s membership citing the US trade ban.
Moreover, the company has voluntarily left JEDEC, an independent semiconductor engineering trade organization, and standardization body over the same restrictions reported Nikkei Asian.
Being outcasted from SD association may not become a big factor for Huawei because the company has already introduced its own Nano-Memory (NM) card solution that is smaller compared to a microSD card.
Now coming to the WFA, the company uses to certify its Wi-Fi supported products including smartphone, may halt the certification for the company until the US permanently lifts the ban from Huawei which is current restrictions.
Also, if we compare these outcasting with
, , , and business pause with Huawei, the damage can be described in the words “less impactful”.
I guess for the time being Huawei can join a non-US based tech standards consortium instead.