China threatens retaliation at 'unreasonable suppression' of Huawei in US

China threatens retaliation at 'unreasonable suppression' of Huawei in US

Then-chairman Eric Xu warned in March that more USA pressure on Huawei might provoke Chinese retaliation that could disrupt its global industry.

Despite the ban which was announced past year, Huawei was using USA software and technology to design semiconductors, specifically it had production of chips in overseas foundries using US equipment. The US has said Huawei's technology could be used for spying by the Chinese government.

Huawei has largely weathered an escalating 18-month campaign by the Trump administration to isolate it internationally.

Huawei is now holding its 17th annual Global Analyst Summit in Shenzhen and instead of pressing on with its programme was forced to use the opportunity to issue a strongly-worded statement hitting out at the latest proposed measures.

"Survival is the keyword for us at present", he said.

He declined to give a detailed forecast of the impact when asked by journalists.

In its official response, the firm echoed China's stance, saying the USA move will have a "serious impact on a wide number of global industries".

Foreign manufacturers using USA chipmaking gear are now required to get a license before being allowed to sell semiconductors to Huawei, which is the world's number-two smartphone maker.

On Friday, the USA also extended waivers that allow United States companies, many of them rural internet providers, to use some kinds of Huawei technology for another 90 days. Nikkei reported on Monday that TSMC has already moved to stop new orders from Huawei, although TSMC told Reuters the reports were "purely market rumor".

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The company's telecoms market in the US evaporated after a congressional panel in 2012 labeled Huawei and its Chinese competitor ZTE Corp. security risks and told phone carriers to avoid them. Huawei has repeatedly denied that it is a national security risk to America. United States suppression has become the No. 1 challenge to China's development.

China's Ministry of Commerce on Sunday warned it would take unspecified "necessary measures" to protect Huawei.

The Commerce Department said this week that reprieve is being extended for another 90 days.

By announcing the new restrictions, USA officials said they realized that Huawei had successfully circumvented restrictions imposed since 2019.

Beijing first announced plans to draft an "unreliable entity list" of foreign companies in retaliation to the United States' blacklisting of Huawei past year.

Global Times said in a report that "Beijing was ready to target Apple, Qualcomm, Cisco and Boeing in retaliation for the restrictions on Huawei".

Huawei says the long term effect of this ruling will harm USA companies.

"The key is the threat to the technology hegemony of the US" posed by Huawei, he added.

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