According to insiders, American companies will hardly be allowed to supply goods to the Chinese telecom supplier Huawei in the future. The previous restrictions, which mainly affected products related to the modern 5G mobile communications standard, have been extended to older technologies, a person familiar with the matter said.
The new restrictions also apply to parts for building WLAN networks based on the “WiFi 6” and “WiFi 7” standards, as well as high-performance chips for artificial intelligence or cloud offerings. First, the Financial Times and the Bloomberg news agency reported on the tightening of sanctions.
The US Department of Commerce pointed out that regulations are continuously monitored. It did not comment on the specific case. Huawei declined to comment on this topic. The Beijing government is “seriously concerned” about this development, said Mao Ning, spokeswoman for China’s foreign ministry. “This move violates market economy principles and the rules of international trade and finance, damages the international community’s confidence in the U.S. business climate, and represents blatant technological hegemony.”
Donald Trump, the predecessor of current US President Joe Biden, blacklisted Huawei in 2019. Since then, American companies have had to apply for licenses to export certain products. In this context, the government granted permission to Qualcomm, among others, to supply chips for the mobile communication standard 4G. According to the information, the volume of approved deliveries to Huawei in 2021 amounted to 61 billion dollars (currently 56 billion euros).
In recent months, however, the US government has been tightening its thumbscrews to prevent the Chinese military from modernizing and strengthening. Among other things, Biden banned the export of machines for the production of chips to the People’s Republic. According to media reports, the US convinced the Netherlands and Japan to join this ban. Major suppliers of semiconductor manufacturing machinery are located in these two states.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
