The head of Chinese tech giant Huawei has admitted that the company is experiencing serious difficulties under comprehensive U.S. sanctions, and that survival has become the company’s main focus. Huawei has called on Washington to reconsider its policy of suppressing Huawei and disrupting the global supply chain.
Huawei’s Chairman-in-Office Guo Ping said in a media interview Wednesday (Sept. 23) in Shanghai during Huawei’s annual Connect conference, “The U.S. has revised its sanctions for the third time, and these measures have really created a huge challenge to our production and operations.”
Sanctions revised three times, much more effective
In the last year or so, the U.S. government’s sanctions against Huawei have been adjusted three times, significantly increasing in scope and intensity.
In May of last year, the U.S. government added Huawei to its sanctions list, prohibiting U.S. companies from supplying products and components to Huawei.
In May, the U.S. government modified the sanctions to require foreign manufacturers using U.S. chip manufacturing equipment to obtain permission from Washington before supplying semiconductor products to Huawei.
In August, the U.S. government extended the original restrictive measures to the world, requiring all companies worldwide that use U.S. chip manufacturing technology and equipment to stop supplying Huawei, cutting off almost all of Huawei’s sources of chips.
During his speech, Guo Ping admitted that “Huawei is now experiencing great difficulties.” “The continued crackdown (in the U.S.) has put a lot of pressure on Huawei’s operations,”
Guo Ping made no secret of the fact that “survival is the main line of the company.”
Huawei: still willing to buy Qualcomm products if possible
The main reason for Washington’s global blockade of Huawei is its close ties to the Chinese Communist Party (CCP) and the Chinese military, and its ability to collect big data and conduct espionage for the CCP through its network equipment and 5G network, thus posing a serious national security threat to the United States and the West. Huawei has denied these U.S. claims.
Qualcomm in the U.S. is applying to the U.S. government for a license to continue supplying Huawei, Guo Ping said. Intel has received permission to supply certain products to Huawei. China’s Semiconductor Manufacturing International Corp. has also applied for a license from the U.S. government and has not yet received a response. The machines used by SMIC to produce the chips are imported from the United States.
Guo Ping said Huawei is willing to use Qualcomm’s chips if Qualcomm gets permission to avoid the ban.
According to Reuters, Guo Ping said during the Huawei Connect annual meeting, Huawei “hope that the U.S. government to reconsider its policy, if the U.S. government to grant Qualcomm license, we are still willing to buy the U.S. company’s products.
TSMC has cut off supplies
The Kirin chip used in Huawei’s phones is made by Taiwanese chipmaker TSMC. Starting September 15, TSMC will stop supplying Huawei in accordance with the U.S. government’s restriction. Huawei had also said earlier that it would stop producing the most advanced chips in the Kirin series used in Huawei’s high-end cell phones from Sept. 15.
Analysts estimate that Huawei’s stockpile of Kirin chips will run out next year.
Consumers are snapping up Huawei phones fearing the end of its cell phone business. Dealers say that Huawei has raised the price of some models by as much as 500 yuan.
Washington has so far shown no signs of easing restrictions on Huawei. The U.S.-China relationship is going through its worst moment in decades.
The U.S. said last month that it would promote a “net neutrality” campaign to prevent Chinese applications and communications companies from accessing sensitive information about U.S. citizens and businesses.
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