ChinaThe U.S. government accused Washington of pursuing “technology hegemony” on Tuesday after news reports United States of america Blocking all access to US suppliers could increase pressure on the tech giant Huawei.
The potential move, reported by Bloomberg News, The Financial Times and The Wall Street Journal, would tighten restrictions imposed in 2019 that limited Huawei’s access to processor chips and other technology. The company, which makes network equipment and smartphones, was allowed to buy some less advanced components.
Huawei Technologies Ltd., China’s first global tech brand, is at the center of a conflict between Washington and Beijing on technology and security. US officials say Huawei is a security risk and could facilitate Chinese espionage, an allegation the company denies.
Foreign Ministry spokeswoman Mao Ning said, “China is deeply concerned about these reports.” He accused Washington of “misusing the concept of national security and state power” to suppress Chinese competitors. Mao said, “Such practices are contrary to the principles of a market economy and blatant technocracy.”
Mao said Beijing would “safeguard the legitimate rights” of its companies, but gave no indication of how the government might respond. Beijing has made similar announcements after previous US action against its companies but often does nothing.
Alphabet Inc. A ban on the sale of advanced US processor chips and music, maps and other services from its Google unit crippled Huawei’s smartphone business. The company sold off its low-cost Honor smartphone brand to revive sales by breaking away from restrictions imposed on its corporate parent.
Also read: US ‘closely monitoring’ India-China border: State Department
The Commerce Department agreed to grant export licenses to US companies to sell less-advanced chips and other technology to Huawei that was not considered a security risk. The complaints would then result in suppliers losing billions of dollars in annual sales. The Biden administration is now considering not granting such licenses, though no decision has been made, news outlets reported, citing unnamed people familiar with official deliberations.
Huawei has scrambled to remove US components from its networks and other products and launch new business lines serving factories, self-driving cars and other industrial customers. The company hopes that they are less susceptible to US pressure. Huawei says its business is resuming.
“In 2020, we successfully pulled ourselves out of a crisis situation,” Eric Xu, one of three Huawei executives who replaced him as chairman, said in a December letter to employees. “US sanctions are now our new normal, and we are back to business as usual.” Xu said last year’s revenue was projected to be little changed from 2021 at 636.9 billion yuan (US$91.6 billion).
This story has been obtained from a third party syndicated feed, Agencies. Mid-Day accepts no responsibility or liability for its reliance, reliability, credibility and data of the text. Mid-day Management/mid-day.com reserves the sole right to modify, delete or remove (without notice) any Content at its sole discretion for any reason whatsoever.
