China and the U.S. are still at loggerheads over multiple issues. The trade relationship between both countries had since gone sour and this is affecting technological development. Initially, there were hopes that the President Biden administration may change the situation between the U.S. and China. However, his (Biden’s) early move shows that this change will be negative. As the first line of action, President Biden is tightening the clampdown on Huawei.
Some of Huawei’s suppliers have been informed of changes to their previously approved licenses to supply Huawei. These changes make their supply of components to Huawei more difficult. The administration also places a ban on any item for use in or with 5G devices. In response, the Chinese government condemns the action of President Joe Biden. According to China, no one should put their trust in the U.S. China claims that the U.S. “isn’t a reliable country that is to be trusted.”
This new ban by the Biden administration will be effective from this week. Foreign Ministry spokesman Zhao Lijian claims that there is no winner in this sort of tussle. According to him, these new measures will affect both the U.S. and China. Apparently, the U.S. does not care about that.
“It will severely disrupt the technological exchanges and trade exchanges of the two countries and the world at large, it will undermine the global industrial chains and supply chains,”…“The U.S. should stop the suppression on Chinese companies immediately and treat Chinese companies in a fair, just and non-discriminatory manner.”
U.S prohibits export of American 5G tech to Huawei
The U.S rules prohibit the exports of certain components like semiconductors, antennas, and batteries to Huawei. The rules specifically target 5G development. Obviously, the U.S. does not want Huawei to use its technology to surpass it in the 5G field. In this regard, Huawei has a lot of work to do. Some companies already have a special license to ship to Huawei. However, other firms do not have the same privilege. Thus, while Huawei scrambles for components, U.S. suppliers are losing money.
The U.S. laws on the ban on Huawei have been very complex right from the first day. It appears to be bogus and many companies do not understand the extent of the ban. The U.S. government considers Huawei as a national security threat. Thus, all American companies must obtain government licenses if they want to sell American tech and intellectual property to the Chinese telecommunications-equipment giant.