Huawei becomes latest U.S. target in crackdown on Chinese tech

In Business
February 02, 2023
Huawei becomes latest U.S. target in crackdown on Chinese tech

China said it was “seriously concerned” by reports that the United States was further restricting sales of American technology to Huawei. Huawei is a technology company that U.S. officials have long considered the Chinese technology company to pose a national security threat to the United States, saying it allegedly supports Beijing’s espionage activities.The Financial Times first reported that the U.S. Commerce Department had informed U.S. companies that it would no longer issue technology export licenses to Huawei, cutting off the Shenzhen-based company from the supplies it needs to make its products open.

The White House and Commerce Department have not yet responded to a request from Voice of America (VOA) to confirm the reports. But observers said the move could be the latest tactic in the geoeconomic strategy of the Biden administration, which is facing increasing pressure from Republicans to compete and win with China.

The crackdown on Chinese companies began with the Trump administration, which put Huawei on an export blacklist in 2019 but provided exceptions for some U.S. companies, including Qualcomm and Intel, which received License to provide non-5G technology. Since taking office in 2021, President Joe Biden has taken took a more radical stance than his predecessor, Donald Trump. Now the Biden administration appears to be moving toward a blanket ban on all technology exports to Huawei.“Based on our current understanding, these new restrictions will include projects below the 5G level,” she told VOA. “So, the same goes for 4G projects, Wi-Fi 6 and 7, artificial intelligence, high-performance computing, and cloud capabilities.

Howell said that if the U.S. Department of Commerce implements the ban as planned, U.S. companies whose revenues will be directly affected may be affected. resist. For now, Intel and Qualcomm are still selling chips that go into laptops and phones made by Huawei.

Paul Triolo, vice president for China and technology at the business consulting firm Albright Stonebridge Group, said that reducing revenue for these tech companies would allow them to reduce research and development budgets and Leading to layoffs must be carefully balanced against clear national security gains. “In the current climate of U.S.-China relations, the art of balancing is abandoned, preferring to treat technology deals between the U.S. and China as basically a zero-sum game,” he told VOA.

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