Amid tech war, Chinese Huawei is unlikely to be off the U.S. restricted entity list
Update: June 13, 2021 7:05 PM STI
Beijing [China], June 13 (ANI): The U.S. Innovation and Competition Act, which has allocated $ 54.2 billion to boost U.S. skills on a number of technology fronts, dropped China’s Huawei Technologies from a list restricted entities, prohibiting it from accessing US hardware and software.
The bill currently awaiting passage in the US House of Representatives dispelled any illusions that the 46th US President would overturn the policies of his predecessor Donald Trump, according to the South China Morning Post (SCMP).
Complicating matters further is Huawei founder Ren Zhengfei, whose eldest daughter Meng Wanzhou is awaiting extradition in Vancouver to stand trial in the United States since 2018. In February, Ren admitted that it would be “extremely difficult to remove Huawei. from the list of entities ”.
Huawei, a private company that has reported financial results since 2000, posted the weakest annual revenue growth in ten years last year.
“Given that the United States intends to restrict Huawei’s development in high-end areas such as 5G … the likelihood that the United States will lift its smartphone chip ban for Huawei in the near term is low. “said Arisa Liu, chip industry analyst. with the Taiwan Institute of Economic Research.
U.S. efforts to downsize one of China’s largest tech companies have only added to Beijing’s urgency to seek self-sufficiency in a range of strategic technologies, such as semiconductors, a reported SCMP.
Serving over a third of the world’s population, Huawei has been accused by US officials of being a national security risk due to alleged ties to Chinese military and security agencies, prompting Ren to publicly defend his company in the midst of the US-China technology war.
During Trump’s tenure, Huawei was singled out as a competitor to US interests under the guise of cybersecurity and a threat to US national security. Trump made it clear in 2018 that the United States could kill a Chinese company if it wanted to, by banning American companies from exporting to ZTE, Huawei’s rival providing telecommunications systems and 5G infrastructure.
On December 1, 2018, Meng was arrested in Canada while transferring planes to Vancouver Airport, at the request of the US government.
Huawei’s fate in May 2019 was sealed when the Commerce Department added Huawei and 70 affiliates to its entity list, banning the telecommunications giant from purchasing parts and components from US companies without approval. from the US government.
Huawei’s rotating chairman Eric Xu Zhijun said earlier this year that Huawei could no longer find a chipmaker to make chips.
Huawei’s future remains bleak amid the US chip blockade and uncertainty as the company shifts from a pure hardware vendor to a software services company, including the cloud and its own system. Harmony exploitation, quoted SCMP analysts.
“The shift to electric vehicle systems and now to major software development appears to be more of a response to government expectations than to corporate demands or market necessities,” said Brock Silvers, chief investment officer at Kaiyuan Capital, based in Hong Kong. “Both efforts are far from Huawei’s heart, and success is far from assured.”
In light of the deteriorating relationship between the United States and China, Washington has called Chinese technology companies – Chinese telecommunications giant Huawei, as well as ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology and Dahua Technology – as threats to national security. (ANI)