New US Rules Have Put Chinese Huawei on the Brink of Survival

New US Rules Have Put Chinese Huawei on the Brink of Survival

Huawei, a powerful Chinese high-tech company, on Monday sharply criticized the new rule, introduced in the United States, calling it an attack on a company that put the company “on the brink of survival” and “caused chaos in the global high-tech industry.”

On Friday, the US Department of Commerce introduced a new rule that requires foreign companies that use American equipment to produce microchips to first obtain a permit before selling Huawei semiconductors. The company, which is the second largest manufacturer of smartphones in the world, uses chips and semiconductors, which are made in the world using American technology.

“This new rule has an impact on the operation of networks that cost many billions of dollars and are present in more than 170 countries around the world,” – said in a statement the company’s chairman Guo Ping. Guo Ping stressed: “The main thing for us now is survival.”

On Friday, US Secretary of Commerce Wilbur Ross said the new rule was designed to prevent Huawei from circumventing US sanctions and using US technology to produce semiconductors abroad. Even the company’s development of its own components will still depend on American technology, Ross said.

On Sunday, the Chinese Ministry of Commerce issued a statement sharply condemning the US actions and stated its readiness to “take all necessary measures” in response.

The United States has long claimed security risks from Huawei, in part because Washington believes the company could provide opportunities for Chinese authorities to monitor users and spy. Under Chinese law, the government may have access to the data collected by the company, or instruct the company to collect such data.

Huawei denies the allegations.

In the United States, cooperation with Huawei is virtually prohibited. In May 2019, the US Department of Commerce added Huawei to the list of those whose activities are contrary to American interests.

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