New episode in the China-US trade war

The United States has long been at war with China for dominance in the field of 5G, where it has a huge advantage. This is inadmissible to the President of the United States, Donald Trump, since his country must always be at the forefront of everything and since then he has decided to start a war against China. In this war, Huawei has been the most affected, accused of espionage against American security, which is why since then the Americans have been imposing all kinds of obstacles on them so that they cannot develop.

The company, until now, always finds ways to overcome these difficulties imposed by the Trump administration, but little by little it is running out of options and the United States is imposing new rules to try to overthrow technology trade with China, affecting more and direct and serious to Huawei.

A trade war for dominance of 5G and semiconductors

This trade war has been over eight years since it began, where in 2012 the United States ordered to stop using Huawei network devices until finally said company was added to the blacklist of companies in all states. This led to the current trade war between the United States and China.

On May 15, 2020, the Trump administration renewed Huawei's ban until 2021, which prevents the company and its subsidiaries from doing business with hardware and software companies in the United States. Huawei currently survives, since it has been able to overcome some of the restrictions by relaunching old devices as new editions, but it is something that will not last much longer.

These new rules imposed by the United States government establish renewed prohibitions for all semiconductor companies that sell components to China, whether they are RAM memory chips or the like. It also extends to companies that are established outside the territory of the United States, such as TSMC, which currently manufactures Huawei HiSilicon processors. The United States Department of Commerce will only allow chips that are currently being manufactured and in production to be shipped to the Chinese company as long as the shipment is made before a set maximum deadline of 120 days.

More and more stones on the way for Huawei

Commerce Secretary Wilbur Ross released a statement saying that "despite the actions that the Department's List of Entities took last year, Huawei and its foreign affiliates have intensified their efforts to undermine these national security-based restrictions through of an effort to indigenize ».

These new rules have been created and are intended to deal with the fact that Huawei still relies on many components of American companies, including indirectly through companies that supply essential hardware and software for its products.

According to China's Global Times, the country is preparing its own restrictions on American companies as a counter measure in response to the Huawei ban and that could involve the incorporation of companies such as Apple, Cisco and Qualcomm in the so-called "list of little entities reliable ”, which has caused riots among investors.