America announced new restrictions on the Huawei of China Telecom to further crack down on its semiconductor chip supply.
The U.S. Ministry of Industry and Security announced new rules on Friday requiring manufacturers to export semiconductor chips that use U.S. technology or design to Huawei with a license from the U.S. government, even manufacturers outside the United States.
And that means that, whether or not a U.S. company uses U.S. technology in its products, it needs a license to export to Huawei. For example, the United States will be able to ban TSMC from supplying Huawei's Hayes semiconductor.
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What does the US say?
The U. S. says the rule is meant to protect national security.
The business minister Ross (Wilbur Ross) refers to ways in which Huawei and its foreign affiliates have dodged the physical list restrictions imposed by the United States last year. "We must amend the rules that we have been used by Huawei 、 Hayes to prevent United States technology from contributing to malicious acts against United States national security and foreign policy interests. "
The United States put Huawei and its subsidiaries on its physical list last May, requiring U.S. companies to obtain U.S. government approval before exporting parts and technology to Huawei. Huawei is the world's second-biggest handset maker, buying more than $10 billion a year from U.S. companies.
The U.S. government has repeatedly denied that Huawei equipment could be used as a spy in Beijing.
A "list of entities" sanctions have hit Huawei hard, the biggest trouble being Google's failure. Huawei phones can't use google's android-based software.
Huawei chip sources are also greatly affected. U.S. production of parts and components fell sharply after sanctions Huawei could not be purchased from the U.S., according to Japan economic News. To Huawei the top Mate30 models The 5G edition, for example, saw Chinese-made parts rise from 5 percent to 42 percent, while American-made parts slipped from 11 percent to about 1 percent.
new restrictions will further impact Huawei overseas chip supply chain.
"This rule places the United States, American businesses and United States national security first ," said United States officials who briefed journalist on the policy by teleconference.
America's new ban on Huawei is no surprise. Reuters published an exclusive report back in late march that Washington intended to restrict overseas companies from selling chips made from american technology to Huawei.
According to U.S. officials, the new rules are designed to help the U.S. control exports to Huawei and do not mean that all export applications will be rejected.
Equipment and software produced and delivered within the next 120 days will be exempted to reduce economic immediate impact.
How do China and Huawei say?
As of press release, Huawei had not yet responded to the new ban.
The United States has repeatedly pressured allies to exclude Huawei from its five G network suppliers.
Huawei U.S. Chief Security Officer Andy Paddy (Andy Purdy) said in an exclusive interview with the The British Broadcasting Corporation earlier that the ban Huawei be met with an alternative approach to both procurement and R & D, looking for new suppliers to replace the United States and developing technology on its own.
Huawei U.S. Chief Security Officer: The U.S. hit Huawei his foot
As Paddy put it, the strategy that the United States is taking is "carpet bombing of Huawei, killing Huawei in the United States and around the world. "He pointed out that the United States was making a move to harm the interests and employment of its own businesses.
The global times, china's state-run media, quoted xinyuan as saying that if the united states further restricted Huawei supply chains, china would launch a "list of unreliable entities" to restrict or investigate u.s. technology companies, including qualcomm (Qualcomm), cisco (Cisco) and apple. China will also suspend the purchase of Boeing aircraft.
After the US blacklisted Huawei in May last year, China's Ministry of Commerce announced that it would establish a "list of unreliable entities" system to combat foreign enterprises, organizations and individuals who impose a blockade or cut off their supply to Chinese enterprises for non-commercial purposes. To date, however, China has not included any institutions in the list of unreliable entities.
Huawei disputes: a barometer of Sino-US trade agreements
Huawei disputes go beyond the scope of economic and trade, involving Sino-US scientific and technological competition, national security and other factors, but it is often closely related to the process of trade negotiations between the two countries.
Last may, trade talks between china and the us hit the rocks again, and soon after Trump announced a third round of tax increases, Huawei was blacklisted. The trade war abated after he met Xi Jinping chinese president in june, Trump publicly said he would allow Huawei to buy products from the u.s. that do not involve national security.
A new round of bans on Huawei comes at a time when the Sino-US trade deal is uncertain. The new crown epidemic has affected China's procurement capacity, the implementation of the first phase of the trade agreement is blocked, the second phase of the negotiations are far away, the two countries also because of the origin of the virus and epidemic prevention responsibility debate.
The U.S. president Trump ambivalent about Huawei, saying on several occasions that Huawei disputes could be included in trade negotiations.
The president Trump criticized China for failing to comply with the trade agreement, even saying that it had considered "cutting off relationship ". with China ", despite a recent statement by U.S.-China trade representative
He wrote in his Twitter that the "epidemic from China" caused irreparable damage to the "100 trade agreements ".
