'Stop suppression of Huawei', China says US actions destroying global supply chains

18 May 2020 8:10 AM
Beijing has urged the United States to avoid the “unreasonable suppression of Huawei and Chinese enterprises” after Washington announced new export controls to restrict the tech giant’s usage of semiconductor technology.

The latest restrictions on the world’s second-largest smartphone manufacturer, which reaches the centre folks spying allegations, certainly are a new escalation in the US-China battle for global technological dominance.

“The Chinese government will firmly uphold Chinese firms’ legitimate and legal rights and interests,” the Ministry of Foreign Affairs said in a statement Saturday.

“We urge the united states side to immediately stop its unreasonable suppression of Huawei and Chinese enterprises.”

The ministry said the Trump administration’s actions “destroy global manufacturing, supply and value chains”.

THE UNITED STATES Commerce Department said Friday the controls would “narrowly and strategically target Huawei’s acquisition of semiconductors that will be the direct product of certain US software and technology.”

US officials have repeatedly accused the Chinese technology giant of stealing American trade secrets and aiding China’s espionage efforts, ramping up tensions with the rival superpower while both sides were involved in a long-simmering trade war.

Subsequently, Huawei has increasingly relied on domestically manufactured technology, however the latest rules may also ban foreign companies that use US technology from shipping semiconductors to Huawei without US permission.

The new restrictions will cut off Huawei’s access to among its major suppliers, the Taiwanese chipmaker TSMC, which also manufactures chips for Apple and other tech firms.

The US this past year banned Huawei from using US-manufactured semiconductors within their products.

China has threatened retaliation against the united states for the move, including imposing restrictions on major US organizations and putting them on an “unreliable entity list”, according to an anonymous government source quoted in the Communist Party tabloid Global Times on Friday.

US tech giants Apple, Cisco, Qualcomm and planemaker Boeing are among the organizations which may be targeted, the report said.

US-China relations are again on the rocks with Washington and Beijing trading barbs over the origins of the coronavirus pandemic.

In the last week, China has also threatened retaliatory measures against the united states for restricting the visa stay limits of Chinese journalists, and for a number of lawsuits filed by US lawmakers against China for the coronavirus pandemic.

Huawei has not yet taken care of immediately requests for comment.