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China says targeting Huawei threatens global supply chain

Bloomberg | Updated on May 17, 2020

File photo   -  Reuters

China said the new United States (US) export restrictions targeting companies including Huawei Technologies Co may threaten the global supply chain.

Beijing opposes the new US rules and will take all necessary measures to defend the rights and interests of Chinese companies, the Ministry of Commerce said in a statement Sunday. It urged Washington to help create conditions for normal trade and cooperation between enterprises.

The US on Friday moved to prevent sales to Shenzhen-based Huawei by chip-makers using American technology. The Commerce Department said it would require licenses before allowing US equipment to be used by the Chinese company or its 114 subsidiaries, including its chip-design unit HiSilicon.

The move is designed to inhibit Huawei from producing and designing its own chips, a senior department official said. US officials accused Huawei of being a security threat tied to the Beijing government, an allegation the company denies.

The new rules require any foreign chip-maker that uses American gear to get a license before they can sell to companies on a US blacklist, a roster that includes Huawei and other prominent Chinese tech giants such as SenseTime Group Ltd and Megvii Technology Ltd.

Published on May 17, 2020

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