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U.S. Government Blocks Chip Supply to Huawei: A New Trade War?

Daniel Kim Views  

An employee was on the phone at a Huawei store in Beijing, China, in July 2020. ⓒAP/Newsis

China warned the U.S. that it would also suffer damage from its government’s decision to block Huawei, China’s largest telecommunications equipment company, from supplying American-made semiconductors.

China’s Ministry of Commerce stated on the 8th that the U.S. government’s additional sanctions against Huawei violated the World Trade Organization (WTO) agreement and would harm U.S. companies, as reported by Reuters.

On the 7th, the U.S. government revoked the export permits that allowed Intel and Qualcomm to supply semiconductors to Huawei. Michael McCaul, Chair of the U.S. House Foreign Affairs Committee, explained that Intel and Qualcomm are companies that they have been worried about being too close to China and that this measure is crucial in blocking China’s advanced technology development. He predicted that all U.S.-made semiconductors sold to Huawei would be blocked.

Reuters analyzed that they took these measures after Huawei announced last month that it would equip its first AI notebook, the MateBook X Pro, with Intel’s new semiconductor chip. After Huawei’s AI notebook launch announcement, Republican lawmakers reportedly strongly urged the Commerce Department to cancel the Huawei export licenses of U.S. companies, claiming that “blacklisted company Huawei is reviving.”

In response, a spokesperson for China’s Ministry of Commerce criticized the U.S.: “The U.S. continues to impose unreasonable sanctions on Chinese companies by generalizing the concept of national security and politicizing economic and trade issues. This is a typical practice of economic threats that seriously harms the interests of U.S. companies.”

Daniel Kim
content@viewusglobal.com

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