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Huawei calls US's ban "arbitrary and pernicious" due to stringent chip export rules

Huawei ban in the US has been extended until 2021 and now the tight chip export rules prove disadvantageous for Huawei

New Delhi Published on: May 18, 2020 19:01 IST
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Huawei has been facing issues with the US since over a year

Huawei on Monday termed the US government's new export controls aimed at limiting the Chinese technology giant's access to semiconductor technology "arbitrary and pernicious" which "threatens to undermine the entire industry worldwide".

Delivering his keynote address at Huawei's annual analyst summit, the company's Rotating Chairman Guo Ping said that the US actions against Huawei will harm the experiences of its customers worldwide.

The new rules prevent chip-makers that use US technology and software in chip design from shipping to Huawei without permission of the US government. The US government alleged that China could use Huawei technology for spying purposes and added the company to the Entity List on May 16, 2019.

Citing the rationale behind the new export controls announced last week, the US government alleged that Huawei and its foreign affiliates stepped-up efforts to undermine the Entity list restrictions. Refuting these charges, Huawei said it has fulfilled its contractual obligations to customers and suppliers and has "survived and forged ahead against all odds."

"This new rule will impact the expansion, maintenance, and continuous operations of networks worth hundreds of billions of dollars that we have rolled out in more than 170 countries," Huawei said.

"It will also impact communications services for the more than 3 billion people who use Huawei products and services worldwide," the company said.

The development came amid a Nikkei Asian Review source-based report on Monday that Taiwan Semiconductor Manufacturing Co. (TSMC), the world biggest contract chipmaker, has halted new orders from Huawei Technologies in response to tighter U.S. export controls.

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