The United States has taken its anti-Chinese technology war to a new level with a renewed crackdown on Chinese dominance in the technology sector. In the wake of continued geopolitical tension and the withdrawal of certain licenses related to the sale of chips to the Shenzhen-based company Huawei, the US is taking measures to protect its national security interests.
The Department of Commerce has confirmed this news via CNBC but has not provided details on which specific licenses have been withdrawn. According to the department, this decision is consistent with its ongoing assessment of how best to protect national interests in light of the ever-changing digital threat landscape.This is not the first instance of the United States taking action against Huawei. In 2019, the company was added to an “entity list” due to concerns regarding its ties with the Chinese military. Despite recent strict trade regulations, Huawei has shown remarkable resilience, especially in its consumer sector. The recent release of the Mate 60 Pro has been a significant factor in the company’s global success, as it utilizes chips manufactured by SMIC, a leading chip manufacturer in the country. This allows Huawei to bypass restrictions imposed by the United States and other governments, addressing challenges posed by trade barriers.
While Huawei may not rank among the top five smartphone manufacturers in terms of global sales, it saw an impressive 70% year-on-year increase in shipments in mainland China in Q1 2023, representing 17% of the market. OPPO, HONOR, and vivo accounted for approximately 15-16% each, highlighting the significant level of digital diversity in the Chinese market.The actions of the US government against Huawei come at a time of increasing tensions between the two nations. President Biden has recently signed legislation that could potentially lead to a ban on TikTok in the US, unless the company separates from its parent company in China.
In recent years, the intricate interplay between economic and geopolitical interests has become clearer, but the gradual introduction of these restrictions has allowed both sides to adjust, making many measures ineffective at best.
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