Huawei takes swipe at US following ‘pernicious’ export restrictions
Corinne Reichert / CNET
Huawei said on Monday that its business will “inevitably be affected by the Trump administration’s attempt to restrict global chip delivery to the company.”
Guo Ping, the rotating chairman of Huawei, said he was “confident” that the company would find a solution soon. Guo also said the company committed to complying with US regulations in a speech at Huawei’s headquarters in Shenzhen, China.
“Survival is the key word for us right now,” added Guo.
His comments and a later corporate statement are Huawei’s first official responses to the Trump administration’s move to block global chip supply last week.
The new rules, which were presented by the Department of Commerce, require foreign semiconductor companies that use U.S. technology and equipment to apply for a license before selling to Huawei.
“The US is using its own technological strengths to destroy companies outside of its own borders,” Huawei said in one statement On Monday. “This will only serve to undermine the trust of international companies in US technology and supply chains. Ultimately, it will harm US interests.”
The statement called Washington’s new rules “harmful” and “arbitrary” and further warned against undermining the global semiconductor industry and the overall economy.
The rules follow a ban imposed on Huawei last year that prohibits American companies from selling technology and parts to the Chinese company. This ban was extended for another year earlier this month. Guo said Huawei responded by increasing research and development spending.
In response to Washington’s new export controls, Taiwan Semiconductor Manufacturing, the world’s largest manufacturer of order chips, has stopped accepting new orders, according to a Huawei report released on Monday Nikkei Asia Review. TSMC rejected the report according to “pure market rumors” Reuters.
The US did long claimed that Huawei a close relationship with the Chinese government and that the company’s equipment could be used to spy on other countries and companies. Huawei has repeatedly denied this.
In April, Huawei reported that first quarter sales growth slowed significantly under pressure from the United States and the impact of the United States Corona virus Pandemic.
