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Huawei update – Trump wants to block the firms access to chips, China’s commerce ministry will do what it takes

The US Commerce Department said it would restrict the ability of Huawei to develop semiconductors abroad with US technology.

A late on Friday afternoon US time (into the evening) WSJ report (may be gated):
  • Trump administration said it would impose export restrictions
  • These are designed to cut Huawei’s access to overseas suppliers
  • to stop foreign semiconductor manufacturers whose operations use US software and technology from shipping products to Huawei without first getting a license from US officials
Over the weekend China’s Commerce Dept (CNBC link) said
  • it is firmly opposed
  • it will take all necessary measures to safeguard Chinese firms’ rights and interests
  • it urges the US to immediately stop the policy
The US Commerce Department said it would restrict the ability of Huawei to develop semiconductors abroad with US technology.
The moves threaten to ignite a new round of US-China economic tensions.

UK PM Boris Johnson speaks with China President Xi – says “I love China” (or did he?)

Chinese state media reports that BJ proclaimed his love for China in his phone call with Xi, which came just days after US President Trump threatened BJ over Huawei

You’ll recall the UK is OK with granting sensitive contracts to Huawei despite Trump’s opposition.
On the love, South China Morning Post says:
  • Johnson displayed a cosiness with Beijing that contrasts with his hardline approach to the European Union amid Brexit trade talks.
(SCMP link is here for more)
More:
“Britain welcomes investment from Chinese companies,” Johnson told Xi, according to Chinese state broadcaster CCTV. “We would like to strengthen our cooperation with China under the Belt and Road Initiative.”
Putin, Trump, Xi, Johnson.
Sheesh.
Keeping track of who owns who is getting complicated.
Chinese state media reports that BJ proclaimed his love for China in his phone call with Xi, which came just days after US President Trump threatened BJ over Huawei

China has ordered government offices, public institutions to remove foreign computer equipment & software

The Financial Times reports on the latest from China

China’s administration has ordered all government offices and public institutions to remove foreign computer equipment and software within three years
  • targets Chinese buyers to switch to domestic technology vendors
Sounds like the Chinese version of the Trump admin’s directive to halt ourchases of Chinese tech?
Here is the FT link, may be gated.
And Huawei we go!
Financial Times China microsfot dell
This is unlikely to be viewed as a positive for US-China relations. Should be a ‘risk’ negative.

Huawei: US launched cyber-attacks against its systems

Huawei remarks in an emailed statement

Huawei
  • US government is trying to disrupt its normal operations
  • US instructed law enforcement to threaten its workers
This once again shows that any dispute between the two nations extends beyond the realms of trade. It also highlights why China is adamant to involve Huawei operations with any “trade deal” that may come about between both parties.
The headlines above certainly won’t go down well with sentiment as it risks a further divide between the US and Chinese camps, who are still trying to sort out a meeting this month.
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