Huawei faces US wrath as it tightens the chip export rules

The US is looking to limit Huawei, the Chinese technology giant’s access to semiconductor chip technology. They have announced new export controls that bar semiconductor makers that use US software and also technology in chip-making to export its products to Huawei without the permission of the US government. This is the US’s latest action to thwart Huawei, which, according to US officials, is a national threat. China has threatened to hit back at the US technology companies.

About a year ago, the US made the first move to cut off Huawei, the second-largest phone maker in the world, chip from accessing the US-made semiconductor chips, which are the backbone of smartphones and also computers. The move encouraged Chinese companies to manufacture such chips within the country.

Could the move backfire?

Wilber Ross, the US Commerce department secretary, said that Chinese technology companies were still dependent on the US technologies and also accused Huawei of attempting sabotage by taking steps against earlier export controls. Mr. Ross implicated Huawei and also termed the behavior irresponsible and also called for amending the rules. Exploited by Huawei to prevent the use of US technologies for enabling malicious activities. That demeans US foreign policy interests and also threaten national security. 

The new rule

The new rule applies to foreign-made items made by using US technology. To limit economic harm, the law exempts software or equipment. Shipped or made within the next 120 days of the promulgation of the law. The US officials told reporters during a background. A briefing that the US would consider on case-to-case basis license applications to do business with Huawei. A senior State Department official said that it is a licensing need and also not necessarily meant to deny things. The government intends to approach Huawei with some concern, and also the measure. Will lend to the US government’s visibility about what is happening around. The government has also arranged for some waivers. For the next 90 days for US companies that are providers of rural internet who use some Huawei technology.

Relationship under threat

Blaming China for the spread of the Coronavirus, Donald Trump, who is seeking reelection in November. Has escalated his attacks on China in recent weeks.  During the third week of May, he moved to restrict US government pension funds from choosing Chinese companies for investments. He went on to say that he was ready to cut off the relationship altogether. And also that China could use Huawei’s technology for spying is a concern for the US government.

The US has put pressure on its allies Germany and the UK to bar Huawei from its networks. And also sued the company for doing business with Iran in violation of US sanctions and technology theft.

Huawei has contested the US government’s claims and felt. That the move would hurt US tech firms’ ability to do business and, also, therefore, backfire.

According to a report in China’s Global Times, China has threatened to place US companies. The chip on an ‘unreliable entity list.’ The US move has not only put pressure on Huawei’s microchip business. But has also made it difficult for the smartphone business.