The Chinese government has come into a defence of Huawei asking the US to stop ‘unreasonable suppression’ of Huawei and other Chinese companies. The Chinese government says that it will take ‘all necessary measures’ in response to the new restrictions imposed by the US government on Huawei.
The Chinese government will firmly uphold Chinese firms’ legitimate and legal rights and interests,” the Ministry of Foreign Affairs said in a statement, reports AFP. The report says that the Chinese government has urged the US to immediately stop its unreasonable suppression of Huawei and Chinese enterprises. The Chinese official says that the Trump administration’s actions will “destroy global manufacturing, supply and value chains”. The statement further says, “the US uses state power, under the so-called excuse of national security and abuses export control measures to continuously oppress and contain specific enterprises of the countries.”
The Chinese government response came after the Trump administration passed a new rule by barring global chip suppliers that use US technology to stop doing business with the Chinese company.
The new rule was unveiled by the Commerce Department and it states that the semiconductor companies, which use US technology, will have to take licenses from the US government to sell the product to Huawei. The move will threaten to deal a blow to Huawei in various aspects starting from its smartphone business to telecom equipment business and to its arm HiSilicon Technologies.
For the unintended, most of the chipmakers rely on equipment produced by the US companies including KLA, Lam Research and Applied Materials. The rule will affect Huawei suppliers. Taiwan Semiconductor Manufacturing Co., which is also the major supplier of Huawei for chipset, will be the worst hit from this decision.