After renewing the Huawei veto exemption a few days ago, the Trump administration is planning a new trade restriction for China, as the Wall Street Journal exclusively anticipates. According to the media, this new measure would be aimed at “cutting off Chinese access to key semiconductor technology.” limiting the use of American chip making equipment.
As far as Huawei is concerned, the WSJ affirms that this new measure would be accompanied by a “separate rule” that would limit US companies when it comes to supply Huawei from its facilities abroad. It is expected that restrictions will be placed on the export of chips with some form of US technology first, followed by chip production equipment.
From SamaGame we have contacted Huawei to find out the company’s position and we will update when we receive a response.
Let no one manufacture for Huawei
The measure studied by the United States aims to block semiconductor production in China, which are one of the most imported products by the country. They explain from WSJ that “if the United States restricted semiconductor manufacturing tools, that could harm the local Chinese chip industry”, since “it would be difficult for Chinese chipmakers find suitable replacements from other countries“We are talking about machinery, production equipment, such as those developed by Applied Materials and Lam Research Corp, both from the United States.
In short, companies that have Huawei as a customer would have to choose between buying US equipment or keeping Huawei as a customer, which could be a serious blow to companies like TSMC, one of the largest processor manufacturers in the industry. TSMC manufactures Qualcomm, Apple or Huawei chips, the latter representing 10% of total revenues, according to the media.
A person familiar with the matter sums it up this way: “They don’t want any manufacturer in the world to produce anything for Huawei, that’s the goal,” referring to chip production plants.
Measure is not being well received by all members of the Trump administration And, in fact, the president himself has not yet reviewed the idea. It is still curious that they considered this measure when, in the middle of last year, Trump said that “American companies can sell their products to Huawei” as long as they are “equipment in which there is no national security problem.”
The United States has long accused Huawei of espionage without providing evidence
Recall that the United States has accused Huawei of implementing spying systems on your computers, always without evidence. Huawei, for its part, has always defended itself by claiming that its equipment is safe and that the accusations are unfounded. Recently, the United States renewed the exemption from the veto to Huawei, which did not hesitate to state that the decision “will not, in any case, have a substantial impact on Huawei’s business” and that “however, this decision does not change the fact either that Huawei continues to receive unfair treatment. “
This blockage has caused the company to have to stop collaborating with companies like Google, which, finally, has resulted in some devices such as the Mate 30 and Mate 30 Pro coming to the market without the Google application ecosystem. At the moment, the trade war between the United States and China is still on and does not seem close to ending.