China calls on USA to stop suppression of Huawei

China calls on USA to stop suppression of Huawei

The change means that foreign companies using US chipmaking equipment must obtain a license before they supply certain chips to Huawei or one of its affiliates. Beijing has threatened in the past to issue an "unreliable entities list" that might restrict operations of American companies in China. It urged Washington to help create conditions for normal trade and cooperation between enterprises. Huawei has been circumventing previous restrictions on using US technology to make semiconductors, which are key to its smartphone business, Commerce officials alleged.

Commerce Secretary Wilbur Ross accused Huawei of continuing "to use USA software and technology to design semiconductors, undermining the national security and foreign policy purposes of the Entity List". US Commerce Department Secretary Wilbur Ross said that those efforts were "still dependent on US technologies", and accused Huawei of taking steps "to undermine" earlier export controls. USA officials cite the company's close ties to the regime, as well as Chinese law which compels companies to cooperate with intelligence agencies when asked.

"This decision by the United States government does not just affect Huawei". Huawei denies such allegations. Foreign companies using USA technology to manufacture semiconductors for Huawei or its subsidiaries will still be able to deliver semiconductors already produced for a period of 120 days.

Huawei was placed on a Security Entity List by the USA government a year ago because of concerns over the security of its technology - a claim the company denies.

The Trump administration has dealt another major blow to Huawei Technologies Co.by curtailing its chip supply, an escalation of its campaign against the Chinese company that may also hurt Taiwan Semiconductor Manufacturing Co. It is a national champion among industries the ruling Communist Party is promoting in hopes of transforming China into a global competitor in profitable technologies.

Speaking at the company's Huawei Analysts Summit (HAS), Guo Ping, Rotating Chairman of Huawei, said the company was confident it will find solutions soon and needed time to analyse what the overall impact would be.

That ban inspired a "Boycott Apple" movement in China, with some companies in the country threatening to fire employees who used the company's products instead of Chinese ones.

The conflict is politically explosive because Huawei is more than just China's most successful private company.

"Huawei categorically opposes the amendments made by the U.S. Department of Commerce to its foreign direct product rule that target Huawei specifically". The reach by the government was possible as chip design equipment is often USA -made.

Chinese authorities may also launch investigations into United States firms to enforce compliance under Chinese law.

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