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Washington cannot suffocate Huawei

China Daily | Updated: 2020-03-30 00:00
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You can never wake up a person pretending to be in deep sleep. And in the same way neither can you persuade politicians in the United States to give up their political bias against China's telecommunications giant Huawei, which is a major global provider of telecoms equipment and technologies.

It is reported that some senior US officials have proposed new measures to cut Huawei from the global supply chains. The proposed rule change will require foreign companies that use US-made chipmaking technology and software to obtain a license from the US before selling certain chips to Huawei.

It is reported that the new requirements, if adopted, could specifically target Taiwan Semiconductor Manufacturing Company, a major supplier to Huawei's semiconductor subsidiary HiSilicon.

It is obvious that these US politicians want to strangle Huawei to death.

It seems that they have turned a blind eye to the fact that those which provide Huawei with the chips it needs and those who receive what Huawei provides them for their production of certain products are relying on each other to survive and prosper as part of the global value chain. What these US politicians are hoping to do to Huawei would disrupt the function of this chain, and all the companies that rely on this chain to survive will suffer.

That explains why, although the US government placed Huawei on its sanctioned Entity List in May 2019 in the name of national security, it has postponed the ban time and again to extend the license for Huawei to do business with US companies. The most recent extension allowed US companies to do business with Huawei until May 1, and it is quite likely the license will be further extended.

The UK House of Commons voted early this month to allow Huawei's participation in the development of the United Kingdom's 5G networks. The Chinese telecoms giant has already obtained 91 contracts for its involvement in the development of 5G networks worldwide, and more than half of them are with European countries.

Were it not for its advanced technology and the cost-effectiveness of its equipment and technology, it would be impossible for Huawei to gain such popular recognition worldwide. Having been extensively involved in the construction of the second, third and fourth generation networks in European countries, Huawei has established its reputation globally.

That explains why the scaremongering US politicians have failed in their attempt to dissuade the US' European allies from their continued cooperation with the Chinese company.

The US government will have no chance of strangling the Chinese company to death unless Huawei itself loses its competitiveness. And if the new measures are implemented, the Chinese government will have no choice but to do the same to some US companies.

 

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