China signals it is ready to retaliate for US' Huawei ban by launching investigations or imposing restrictions on companies like Qualcomm, Cisco, and Apple
>> U.S. Delivers Another Blow to Huawei With New Tech Restrictions https://www.nytimes.com/... Paul Triolo / @pstasiatech : U.S. makers of semiconductors worry that the rules will slash their sales not only to Huawei but other Chinese firms, which might worry that the Commerce Department will next target them. Those firms may now look for non-American suppliers of technology, U.S. companies fear. @globaltimesnews : The US companies mentioned, such as @Apple, @Qualcomm, @Cisco and @Boeing, are all highly dependent on the Chinese market. Punitive measures targeting large-sized US companies are the “nuke bomb,” according to analysts. https://www.globaltimes.cn/... Sec. Wilbur Ross / @secretaryross : This is not how a responsible global corporate citizen behaves. We must amend our rules exploited by Huawei and HiSilicon and prevent U.S. technologies from enabling malign activities contrary to U.S. national security and foreign policy interests. → https://www.commerce.gov/... https://twitter.com/... Ted Yoho / @reptedyoho : #Huawei has been & continues to be, a #NationalSecurity threat to the U.S. With a proven track record of #espionage & #intellectualproperty theft, U.S. govt must do what it can to limit their spread into nations we trust & devices we rely on. https://www.reuters.com/... @HouseGOP
It is also a repeat of a playbook Beijing tested earlier: in June 2019 it [[a:942583|summoned US and global tech giants to warn of dire consequences if they cooperated with the bans]], explicitly hoping they would lobby Washington. Now the warning has hardened into named candidates — Qualcomm, Cisco, Apple — with Global Times pointing out how dependent each is on Chinese buyers.
First-order effects
Qualcomm, Cisco, and Apple face possible Chinese investigations or restrictions aimed directly at their China-dependent revenue, making them bargaining chips in the dispute rather than bystanders.
US semiconductor makers lose more than the Huawei account: per Paul Triolo, other Chinese customers now fear being next on the Commerce Department's list.
Second-order effects
Chinese firms begin qualifying non-American suppliers to de-risk against further Commerce Department action, shifting design wins toward suppliers outside US jurisdiction.
US tech companies are pushed back into the lobbying role Beijing cast them in during the 2019 summons — pressuring Washington from inside to soften the rules that cost them China sales.
Third-order effects
If retaliation-for-export-controls becomes the standing exchange rate between Washington and Beijing, supply chains bifurcate by origin of technology rather than by price — the dynamic behind Huawei's later expansion into new businesses on a supply chain rebuilt with billions of dollars in Beijing support, and behind the entity list reaching smaller, more vulnerable Chinese chipmakers like PXW.
The trend: Semiconductor access is becoming reciprocal geopolitical leverage, with each side restricting the other's champions and pushing both ecosystems toward parallel, self-sufficient supply chains.
Trump's new threat re semis sakes to Huawei has ruffled more feathers. Here's a GT broadside as response: China readies biggest counterattack against US - Global Times https://www.globaltimes.cn/...
The United States is making it harder for #Huawei to use our own technology against us, our Allies, and our partners. We will not allow Huawei to flout U.S. export control laws, exploit U.S. technology, and threaten our national security. https://twitter.com/...
Can anyone at @Huawei_Canada remind me how they are a fully independent company and totally separate from the Chinese state again? Anyone? https://twitter.com/...
It didn't take long 🇺🇸🇨🇳. @globaltimesnews reports on “a tsunami of anger among Chinese officials” and different possible actions possibly including trowing Boeing out of the Chinese market. More to come, I fear. https://www.globaltimes.cn/...
The Trump administration has issued new rules that will bar Huawei and its suppliers from using American technology and software, a significant escalation and one that will likely inflame tensions with Beijing https://www.nytimes.com/...
The Commerce Department's rule, effective Friday but with a 120-day grace period, also hits Taiwan Semiconductor Manufacturing Co Ltd (http://2330.tw/), the biggest contract chipmaker and key Huawei supplier, which announced plans to build a U.S.-based plant on Thursday.
The announcement comes as the Commerce Department issues new restrictions on sales to Huawei, the latest sign of US-China friction. https://www.wired.com/...
I don't think Wall Street quite comprehends that Trump actually is now escalating the China trade war in the middle of the biggest economic downturn since 1706. This is too surreal for investors to grasp. https://twitter.com/...
A Chinese state media official suggested China could investigate Apple and Cisco, or stop buying planes from Boeing, after the Commerce Department unveiled a new rule today targeting Huawei: https://www.cnn.com/...
Huawei is a threat to our national security and needs to be stopped — >> U.S. Delivers Another Blow to Huawei With New Tech Restrictions https://www.nytimes.com/...
U.S. makers of semiconductors worry that the rules will slash their sales not only to Huawei but other Chinese firms, which might worry that the Commerce Department will next target them. Those firms may now look for non-American suppliers of technology, U.S. companies fear.
The US companies mentioned, such as @Apple, @Qualcomm, @Cisco and @Boeing, are all highly dependent on the Chinese market. Punitive measures targeting large-sized US companies are the “nuke bomb,” according to analysts. https://www.globaltimes.cn/...
This is not how a responsible global corporate citizen behaves. We must amend our rules exploited by Huawei and HiSilicon and prevent U.S. technologies from enabling malign activities contrary to U.S. national security and foreign policy interests. → https://www.commerce.gov/... …
#Huawei has been & continues to be, a #NationalSecurity threat to the U.S. With a proven track record of #espionage & #intellectualproperty theft, U.S. govt must do what it can to limit their spread into nations we trust & devices we rely on. https://www.reuters.com/... @HouseGOP