U.S. or Upgrade China-based Restrictions Huawei: Harming People

Huawei and many experts and scholars believe that the U.S. crackdown on Huawei has gone beyond the dimension of the normal trade and technology struggle. The new restrictions will not only damage the global industrial chain, but will hurt American companies and ultimately harm themselves. In recent days, multiple U.S. government departments are proposing new restrictions on China, where foreign companies that use U.S. chip-making equipment must obtain U.S. licenses to supply certain chips to Huawei, Reuters reported.

The new rules will target low-tech products that are based on U.S. technology and are manufactured overseas and shipped to Huawei. Under this rule, even if the chip is not developed and designed in the United States, the chip produced must be approved by the U.S. government first as long as only one U.S. device is used at one point in a foreign production line.

Huawei and many experts and scholars believe that the U.S. crackdown on Huawei has gone beyond the dimension of the normal trade and technology struggle. The new restrictions will not only damage the global industrial chain, but will hurt American companies and ultimately harm themselves.

Experts: New U.S.-China restrictions will cause global chaos

Wei Shaojun, head of Tsinghua University’s Department of Microelectronics, said in an interview with the media that if the U.S. restrictions were in place, it would cause global chaos.

First of all, as the most thorough global semiconductor industry, chip products include the joint efforts of many countries and regions. Restricting any chip products using U.S. technology to sell to Huawei would mean depriving many players along the value chain of the right to get a return from Huawei, which is bound to provoke public anger.

Second, if a country kills a business in another country with the power of the government, it obviously gives the government of the country in which the enterprise is the host country to act on the argument, and the strong words are used to kill the people in the end.

Once again, globalization has intertwined the interests of all parties, and the struggle between the two countries will only be a two-way battle for others. Once the United States has imposed this restriction, the consequences may not be foreseeable today, nor will the Future be controlled by the United States.

Zhang Guoqing, a scholar at the American Institute of the Chinese Academy of Social Sciences and an expert on international issues, said the new restrictions in the United States will not only affect the global industrial chain, weaken the confidence of other companies, but will fundamentally shake the international status of the United States in the long run. The Chinese side has the ability to counter-measures, and Apple or other chip companies may be affected, but china will not take the initiative to use these means, let alone harm the innocent.

Liu Chunsheng, an associate professor at the School of International Economics and Trade at the Central University of Finance and Economics, said the new U.S. restrictions would encourage Huawei’s suppliers to choose between the U.S. or Huawei, which would undoubtedly increase the cost of negotiations or trade and would undermine fair competition and technological innovation across the global industrial chain.

U.S. Insider: China-friendly restrictions will hurt U.S. self-interest

The U.S. crackdown on Huawei has been criticized and questioned both inside and outside the U.S. Many U.S. industry insiders are also negative about possible new restrictions in the U.S.

On March 31st Wired magazine quoted Elsa Kania, a researcher at the Center for Agency for American Security, as saying that the restrictions on Huawei would push China towards technological independence.

Neil Thomas, a senior fellow at the Paulson Institute in Chicago, also said the new U.S. restrictions would further spur Huawei to shift to China’s semiconductor supply chain.

Doug Jacobson, a U.S. trade lawyer, argues that the new restrictions have a bigger impact on U.S. companies than on China because Huawei will develop its own supply chain.

In fact, as early as early March, a report by the Boston Consulting Group, sponsored by the Semiconductor Industry Association of America, showed that restricting trade with China in the semiconductor sector and even directly “decoupling” would permanently damage the U.S. semiconductor industry and ultimately lead to its loss of global competitive edge and leadership, with significant negative impacts on the U.S.

U.S. or Upgrade China-based Restrictions Huawei: Harming People

Report released By Boston Consulting Group on March 9

The report said the median revenue of top U.S. semiconductor companies fell 4 to 9 percent in the three quarters since the U.S. began restricting sales of certain technology products to Huawei in May 2019.

China will not sit idly by while the U.S. is concerned about the tech-bullying ism of the U.S.

For some time now, some in the United States seem to have been trying to contain China’s growth, constantly tripping over Chinese high-tech companies. Following the inclusion of Huawei on the “entity list” in May last year, the United States has made a series of tactics, not only slandering disinformation, falsely accusing Huawei and other companies of “manipulating by the government”, “paralysing the network”, “5G devices may be used for espionage”, giving companies “stealing secrets” and “threatening national security” and other hats, but also threatening domestic companies and lobbying others to intimidate other countries.

In response to possible new US restrictions, Xu Zhijun, Huawei’s rotating chairman, responded on March 31st: “The Chinese government will not let Huawei kill or ignore Huawei.” I believe the Chinese government will also take some counter-measures. Why not ban U.S. companies’ 5G chips and base stations and smartphones and smart phones, as well as smart terminals, from china for the same cybersecurity reasons? “

Once the Pandora box is opened, Mr. Xu said, it could be a devastating chain to the global industrial ecology, which could destroy more than just Huawei. It’s hard for any player in the global industry chain to be alone.

Foreign Ministry spokeswoman Hua Chunying also said Tuesday that Huawei’s rotating chairman, Xu Zhijun, was very strong and justified. The Position of the Chinese Government is consistent, and we firmly oppose the use of national power by the United States to crack down on certain Chinese enterprises for unprovoked crimes that are not necessary. The Chinese government will never sit idly by while the US is concerned about this kind of technological bullying.

(Part of it is from the Economic Daily, Science and Technology Daily)