US prepares to cut Huawei off world semiconductor suppliers

12 months ago

The US Department of Commerce has amended export rules to limit the ability of Chinese company Huawei Technologies to receive semiconductors from global manufacturers. China responded by saying that it would list US companies as unreliable, start investigations against them, impose restrictions, for example, on Apple, Cisco and Qualcomm, and postpone the purchase of Boeing aircraft.

The US Department of Commerce Industry and Security Bureau announced plans to limit Huawei Technologies’ ability to use US technology and software to design and manufacture its semiconductors. As the ministry said in a statement, it amends export rules to protect US national security.

Amendments to export rules, according to the ministry, “are strategically directed against the acquisition by Huawei of those semiconductors that are a direct product of US software and technology.”
If the amendments are approved, foreign companies operating on American equipment for the production of microcircuits will need to obtain permission from the United States to supply Huawei or its units with specific products.

For Huawei, which is the second largest smartphone maker in the world, this is a major blow. According to the pro-government newspaper Global Times, citing a source close to the Chinese government, the Chinese authorities have already prepared an answer.

China will take large-scale retaliatory measures to protect its legitimate rights, ”the source said.

Among the possible measures are:

listing American companies on the “list of unreliable legal entities”, which includes foreign companies and organizations that cause or potentially cause harm to Chinese companies and industries, as well as threatening or capable of creating a threat to China’s national security;
introduction of restrictions;
initiating investigations into companies such as Qualcomm, Cisco, and Apple in accordance with Chinese regulations (such as the cybersecurity law and antitrust laws).
In addition, the source added, China may refuse to purchase Boeing aircraft. The publication emphasized that all of the above American companies “are very dependent on the Chinese market.”

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