The Chinese government on Tuesday accused Washington of pursuing “technological hegemony” following reports that the United States could increase pressure on tech giant Huawei by blocking all access to suppliers. US supply.
The Chinese government on Tuesday accused Washington of pursuing “technological hegemony” following reports that the United States could increase pressure on tech giant Huawei by blocking all access to suppliers. US supply.
Possible move, reported by Bloomberg News, Financial Times and The Wall Street Journal, will tighten restrictions imposed in 2019 to limit Huawei’s access to chips and other technology. The company manufactures network equipment and smartphoneare allowed to buy some less advanced components.
Huawei Technologies Ltd., China’s first global technology brand, is at the center of the conflict between Washington and Beijing over technology and security. US officials say Huawei is a security risk and could facilitate Chinese espionage, a charge the company denies.
“China is deeply concerned about the reports,” said Foreign Ministry spokesman Mao Ning. She accused Washington D.C on the “excessive expansion of the concept of national security and the abuse of state power” to suppress Chinese opponents.
“Such practices are contrary to the principles of the market economy,” Mao said, and are “blatant technological hegemony.”
Mao said Beijing would “defend the legal rights” of its companies but gave no indication of how the government would react. Beijing has made similar statements following previous US action against its companies but has generally done nothing.
The ban on sales of advanced U.S. processors and music, maps, and other services from Alphabet Inc’s Google unit. crippled Huawei’s smartphone business. The company sold its low-end Honor smartphone brand to restore sales by separating the brand from sanctions imposed on the parent company.
The Commerce Department has agreed to issue export licenses to US companies to allow them to sell less advanced chips and other technology to Huawei deemed to pose no security risk. That led to complaints that suppliers would lose billions of dollars in annual revenue.
The Biden administration is considering not issuing such permits anymore, although no decision has been made yet, news agencies reported, citing unnamed people familiar with the official discussions.
Huawei has tried to remove US components from its networks and other products, and has launched new businesses serving factories, self-driving cars and other industrial customers. . The company hopes these people are less vulnerable to US pressure.
Huawei says its business is starting to recover.
“In 2020, we have successfully pulled ourselves out of the crisis situation,” Eric Xu, one of three Huawei executives who alternated as chairman, said in a letter to employees last month. 12. “US restrictions are now our new normal and we are back to business as usual.”
Xu said last year’s revenue is forecast to be little changed from 2021 at 636.9 billion yuan ($91.6 billion).
