US piles more pressure on Huawei as China slams ‘technology hegemony’

China has accused Washington of pursuing “technology hegemony” because the United States started stepping up strain on tech large Huawei by blocking entry to American suppliers.

The Biden administration has stopped approving renewal of licenses to some US firms which have been promoting important parts to the Chinese firm, two individuals accustomed to the matter stated on Tuesday.

Neither was authorised to remark publicly on the delicate matter and so they spoke on situation of anonymity.

The firm, which makes community tools and smartphones, has been on the US Commerce Department’s entity record, which includes these topic to licensing necessities, since 2019. 

It has been allowed to purchase some much less superior parts. But the brand new restrictions might lower off Huawei’s entry to processor chips and different expertise, as giant US-based firms equivalent to Intel and Qualcomm are pressured to wind down business with it.

READ MORE: Biden admin halts US companies from granting tech to Huawei

Earlier, Beijing accused US of pursuing “technology hegemony” after experiences emerged that US was blocking all entry to American suppliers.

“China is gravely concerned about the reports,” stated Foreign Ministry spokesperson Mao Ning.

She accused Washington of “over-stretching the concept of national security and abusing state power” to suppress Chinese rivals.

“Such practices are contrary to the principles of market economy” and are “blatant technological hegemony,” Mao stated.

Bloomberg News and the Financial Times first reported that the administration was weighing the transfer.

Huawei Technologies Ltd, China’s first international tech model, is on the centre of a battle between Washington and Beijing over expertise and safety.

US officers say Huawei is a safety danger and would possibly facilitate Chinese spying, an accusation the corporate denies.

READ MORE:
Chip wars: How US short-circuited China’s semiconductor ambitions

‘Restrictions are actually our new regular’

Mao stated Beijing would “defend the legitimate rights” of its firms however gave no indication of how the federal government would possibly reply.

Beijing has made comparable declarations after previous US motion in opposition to its firms however usually does nothing.

The ban on gross sales of superior US processor chips and music, maps and different providers from Alphabet Inc.’s Google unit crippled Huawei’s smartphone business.

The firm offered its low-end Honor smartphone model to revive gross sales by separating it from the sanctions on its company mum or dad.

The US Commerce Department agreed to grant export licenses to US firms to permit them to promote less-advanced chips and different expertise to Huawei that was deemed to not be a safety danger.

That adopted complaints suppliers would lose billions of {dollars} in annual gross sales.

The Biden administration is contemplating not granting such licenses, though no resolution has been made, based on the individual accustomed to the deliberations.

Huawei scrambled to take away US parts from its community and different merchandise and has launched new business strains serving factories, self-driving automobiles and different industrial prospects.

The firm hopes these are much less susceptible to US strain.

Huawei says its business is beginning to rebound.

“In 2020, we successfully pulled ourselves out of crisis mode,” Eric Xu, one among three Huawei executives who take turns as chairman, stated in a December letter to workers.

“US restrictions are now our new normal, and we’re back to business as usual.”

Last yr’s income was forecast to be little-changed from 2021 at $91.6 billion, Xu stated.

READ MORE: Huawei out of ‘disaster mode’ regardless of US-led sanctions

Source: AP