US Government Tries to Cut Off Huawei From the Chip Supply Chain

18 Mai, 2020, 08:25 | Auteur: Auguste Feret
  • US tightens restrictions on Huawei’s chip supply

On May 15, the U.S. Department of Commerce announced it was banning Huawei from using American technology overseas in designing and manufacturing its semiconductors.

By announcing the new restrictions, United States officials said they realized that Huawei had successfully circumvented restrictions imposed since 2019.

On Saturday, China's foreign ministry called on the U.S.to stop its "unreasonable suppression" of Huawei and other Chinese companies.

U.S. Commerce Secretary Wilbur Ross said Friday that Washington wants to prevent Huawei from evading sanctions imposed earlier on its use of American technology to design and produce semiconductors overseas. "We must amend our rules exploited by Huawei and HiSilicon and prevent USA technologies from enabling malign activities contrary to USA national security and foreign policy interests", he said. "This deal bolsters US national security at a time when China is trying to dominate cutting-edge tech and control critical industries". The National Defense Authorization Act that became law in 2018 that bans the US government from using certain products made by Huawei and ZTE. Early Friday, editor-in-chief Hu Xijin of the Chinese newspaper Global Times warned of repercussions that could come for USA technology companies as a result of the decision to block Huawei product development.

The new restrictions on Huawei come amid heightened tensions between Washington and Beijing triggered by the regime's mishandling of the pandemic. These chips end up in Huawei and Honor phones as well as Huawei telecom equipment.

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The Trump administration on May 15 announced plans to block Huawei from obtaining semiconductors from global chipmakers made with US technology, the latest move to clamp down on Chinese tech firms that pose national security risks. "I believe the Chinese government will also take some countermeasures", he said.

Both Huawei and ZTE have repeatedly reiterated claims their technology is "clean" and that the Chinese government has no influence over their operations.

In late March, Huawei rotating Chairman Eric Xu warned that China will retaliate should the USA move to restrict sales by TSMC to his company.

"China will take forceful countermeasures to protect its own legitimate rights", a source told the Global Times, a subsidiary newspaper of China's Communist Party.

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