The Trump administration has moved to block global chip supplies to Chinese teleco Huawei. Image by EPA PHOTO

Technology

China slams US chip action against Huawei

2020-05-18 21:13:27

China’s commerce ministry says it is firmly opposed to the latest rules by the United States against Huawei and will take all necessary measures to safeguard Chinese firms’ rights and interests.

The ministry said in a statement on Sunday that it urges the US to immediately stop the wrong actions.

The Trump administration on Friday moved to block global chip supplies to blacklisted telecoms equipment company Huawei Technologies, spurring fears of Chinese retaliation and hammering shares of US producers of chipmaking equipment. 

The new rule went into effect on Friday but would have a 120-day grace period.

China’s state-run newspaper Global Times, citing an unidentified source, reported that Beijing, in response to the new limits on Huawei, was ready to put US companies on an “unreliable entity list” as part of the countermeasures.

Those countermeasures include launching investigations and imposing restrictions on US companies such as Apple, Cisco Systems and Qualcomm.

“The US has utilised national power and used the so-called national security concern as an excuse, and abused export controls to continue to suppress some particular companies in other countries,” China’s commerce ministry said in the statement.