Experts denounce new restrictions on chips in the US

The United States’ restrictions on exports of purely civilian semiconductor products to China and its decision to cut off supplies to specific Chinese companies smack of economic coercion, and such measures not only violate World Trade Organization rules but also seriously harm the interests. from American companies, Chinese officials and experts said Thursday.

The comments came after foreign media cited unnamed sources as saying the US government revoked licenses allowing companies such as Intel and Qualcomm to ship chips used in laptops and phones to Chinese technology company Huawei Technologies.

A spokesperson for the Ministry of Commerce said in a statement late Wednesday that the reported U.S. measures seriously contradict the country’s commitment that it will not seek to disengage from China or impede China’s development. They also contradict the US claim to “precisely define national security.”

China will take all necessary measures to firmly defend the legitimate rights and interests of Chinese companies, the spokesperson said.

Wei Jianguo, former vice minister of commerce, said: “Despite Washington’s shift in rhetoric from decoupling to risk reduction in key supply chains, the US government continues to tighten its controls on chip exports to China.

“The move is the latest evidence that to contain China’s technological rise, the US government is leveraging all means, regardless of the pain it causes US companies.”

Intel said in a financial presentation that it expected new restrictions on exports to China to hit its revenue in the next quarter. Specifically, Intel said its revenue for the second quarter of this year will still be within the original $12.5 billion to $13.5 billion range it had outlined, but below the midpoint.

Xiang Ligang, director general of the Information Consumer Alliance, a telecommunications industry association in China, said the restrictions on U.S. chips will accelerate Chinese companies’ efforts to make technological breakthroughs.

For example, Huawei’s AI processors became highly sought-after products in China after restrictions were imposed on the export of US company Nvidia’s most advanced AI chips to China, Xiang said.

Meanwhile, despite the prolonged restrictions imposed by Washington on Huawei, the Chinese technology company managed to significantly increase its revenue and profits in the first quarter of this year.

Huawei’s revenue in the quarter through March rose 37 percent year-on-year to 178.5 billion yuan ($24.7 billion), while its net profit rose 564 percent to 19.65 billion yuan.

Although the company did not reveal the reason for the jump, analysts said it was partly due to its strong return to the domestic smartphone market.

After 13 quarters, Huawei returned to the top position in the Chinese smartphone market in the January-March period, capturing a 17 percent market share, driven by the success of its Mate and Nova series, according to the company. Canalys market research.

In the first quarter, Huawei already shipped 11.7 million smartphones, a notable year-on-year increase of 70 percent. This resurgence is notable, given the challenges the company faced due to US sanctions, which led to a major reorganization of its telephone business, Canalys said.

What’s more, Huawei returns to the international smartphone market in a discreet way. The Chinese company’s latest Pura 70 series made its global debut in Malaysia earlier this month. Pura 70 series smartphones are now available for pre-sale in some European countries like Germany.

Analysts said Huawei will step up efforts to regain its share in overseas markets this year, provided its smartphone production capacity can be guaranteed.

On Thursday, the Ministry of Commerce also criticized the US practice of sanctioning more than 300 entities and individuals, including more than 20 companies in mainland China and Hong Kong, for alleged support for Russia’s military and energy development.

He Yadong, spokesperson for the Ministry of Commerce, said at a press conference that US sanctions against Chinese companies under the pretext of engaging with Russia reek of unilateral hegemonic action and economic coercion.