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The United States prohibits companies from selling chips to Huawei




The Trump administration plans to block the supply of semiconductors to Huawei, exacerbating tensions between the U.S. and China.

The new rules will force foreign semiconductor manufacturers using US technology to obtain a license from US officials before shipping products to Huawei. This is a major blow to the Chinese technology giant who needs overseas semiconductors for its smartphones and telecommunications equipment.

The U.S. trade department said the restrictions are a reaction to Huawei and its semiconductor subsidiary HiSilicon, launched last year, that bypasses export controls.

[Read: Trump extends the Huawei ban to 2021

]

“This is not how a responsible global corporate citizen behaves,” Trade Minister Wilbur Ross said in a statement on Friday.

“We need to change our rules, which Huawei and HiSilicon exploit, and prevent US technologies from enabling malicious activities that run counter to US national security and foreign policy interests.”

Rising tensions

The new rules will further exacerbate tensions between the United States and China, which have increased dramatically since the corona virus broke out. Last week, President Trump threatened to “break off the entire relationship with China.”

Huawei’s emergence as a 5G powerhouse and alleged ties to the Chinese government have placed it at the center of a trade war between the two superpowers. Just yesterday, the Trump administration extended the ban on U.S. companies to use Huawei telecommunications equipment until May 2021.

The latest move is another blow to the Shenzhen-based company, which has become increasingly defensive against attacks from the United States.

“The Chinese government will not only watch Huawei being slaughtered on the cutting board,” Huawei’s chairman Eric Xu told reporters on March 31.

We hope that we are not on the brink of a new Cold War.

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