China Daily (Hong Kong)

Washington cannot suffocate Huawei

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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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