China yesterday denounced the US’ latest moves to curb Huawei Technologies Co’s (華為) access to commercially available chips.
The changes announced by the US Department of Commerce on Monday build on restrictions announced in May, adding 38 Huawei affiliates in 21 countries to an economic blacklist as the US seeks to limit adoption of the company’s 5G technology.
In an interview on Fox and Friends, US President Donald Trump said that he does not want Huawei’s equipment in the US “because they spy on us.”
Photo: Reuters
Chinese Ministry of Foreign Affairs spokesman Zhao Lijian (趙立堅) said that Chinese President Xi Jinping’s (習近平) government opposes the “discrediting” of Chinese companies such as Huawei and that the US “has been abusing their state power in the name of national security.”
Zhao called the US the “empire of hackers” and said that the move would only backfire.
“This is nothing short of bullying,” Zhao told a regular briefing in Beijing. “The Chinese government will continue to take all necessary measures to safeguard the legitimate and legal rights and interests of Chinese companies.”
US Secretary of Commerce Wilbur Ross said that the action was aimed at closing loopholes that the company explored after previous US actions.
US Secretary of State Mike Pompeo called it a “direct blow” against the Chinese Communist Party.
A Huawei spokesperson said that the company was still reviewing the impact internally and that it had no immediate comment.
The company has long rejected accusations that its technology can be used to spy on foreign nations or companies.
Despite the US decision, Ross said on Fox Business that talks with China continue on various levels.
The restrictions are likely to further affect Huawei’s 5G base stations and smartphone businesses, because it relies heavily on foreign chips to make those, further denting China’s ambition to play a key role in global rollout of 5G technology.
Huawei’s stockpiles of certain self-designed chips essential to telecom equipment are expected to run out by early next year.
Nokia Oyj and Ericsson AB stand to benefit from Huawei’s further faltering in its 5G prowess, while domestic smartphone rivals including Xiaomi Corp (小米), Oppo Mobile Telecommunications Corp (歐珀) and Vivo Communication Technology Co (維沃) are likely to get a bigger slice of the Chinese market.
All chip companies working for Huawei, no matter where they are, will be subject to licenses, a commerce department official said, adding that even foreign companies would be affected as long as they use US design software and equipment.
That means major Asian and European chip companies, such as Taiwan’s MediaTek Inc (聯發科), Samsung Electronics Co, NXP Semiconductors NV and STMicroelectronics NV might need a license to continue shipping to Huawei, although the official declined to name any specific company.
There are few semiconductor companies in the world, including those in China, that do not rely on software from US-based Synopsys Inc and Cadence Design Systems Inc to create blueprints for chips.
Many companies that make physical chips, including Semiconductor Manufacturing International Corp (中芯國際) in China, use equipment from US-based Applied Materials Inc and Lam Research Corp.
Among Synopsys and Cadence’s customers, MediaTek has become a main chip provider to Huawei after Taiwan Semiconductor Manufacturing Co (台積電) said it would no longer ship chips to the Chinese company after Sept. 15.
That is due to US export-control rules added in May, which forbade companies from making chips based on Huawei’s design using US equipment.
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