U.S.-China tech confrontation is heating up: The United States revokes its export license to Huawei
Background and reasons for the revocation of the U.S. export license to Huawei
In recent years, the United States and China have become increasingly competitive and confrontational in the field of science and technology. The U.S. has long viewed Huawei as a national security threat, fearing that Huawei equipment could be used by the Chinese government for espionage and cyberattacks. The U.S. government has repeatedly taken actions to restrict Huawei's business in the U.S. and other countries.
In 2019, the U.S. Department of Commerce added Huawei to the Entity List, prohibiting U.S. companies from transacting technology with Huawei without a government license. Since then, the U.S. government has issued temporary licenses to companies to continue doing business with Huawei for a limited period of time. The recent abrupt revocation of these permits by the U.S. government has sparked a new round of tensions.
The main reason the U.S. government revokes the license is due to national security concerns. The U.S. has accused Huawei of serious cybersecurity risks, and its equipment could be used by the Chinese government for surveillance and cyberattacks. Although Huawei has repeatedly denied the allegations, the U.S. government still insists that they are considered a potential threat.
The U.S. government is also concerned about Huawei's leadership in 5G network construction, which it believes could put the U.S. at a disadvantage in future communications technology development. Restricting Huawei's access to key technologies and chips is a means for the U.S. government to curb Huawei's development.
The reaction and position of the Chinese government
The Chinese government expresses strong dissatisfaction and resolute opposition to the revocation of Huawei's export license by the United States. A spokesperson for China's Ministry of Commerce said that China firmly opposes this, and that the US approach is a typical unilateralism and protectionism, which seriously violates the consensus reached by the two heads of state and will seriously damage the overall situation of China-US economic and trade cooperation.
The Chinese Government believes that the United States, out of its own selfish interests, abuses export control measures and politicizes economic and trade issues, which seriously violates WTO rules and the principle of fair competition. The Chinese side urges the US side to immediately correct its erroneous practices and create the necessary conditions for China-US economic and trade cooperation.
The Chinese government said it would resolutely safeguard the legitimate rights and interests of Chinese companies and take all necessary measures to counter them. China will not sit idly by and watch the US wantonly suppress Chinese companies, and will resolutely retaliate.
The Chinese government also calls on the international community to jointly defend multilateralism and free trade, oppose unilateralism and protectionism, and safeguard the stability and security of global industrial and supply chains.
Effect of Revocation of License
The U.S. government's revocation of Huawei's export license will undoubtedly further exacerbate the confrontation and tension between the United States and China in the field of science and technology. This move will not only have a direct impact on Huawei's business development, but may also have a knock-on effect on the global technology industry chain.
U.S. companies whose licenses have been revoked will not be able to continue exporting products to Huawei, which will directly harm their interests. Take Intel and Qualcomm as examples, they are both important chip suppliers for Huawei, and once they lose Huawei, a major customer, they will suffer huge economic losses.
Such a move could trigger countermeasures by the Chinese government, further exacerbating the process of "decoupling" the two countries in the field of science and technology. The Chinese government is likely to restrict U.S. companies doing business in China or increase support for local tech companies to reduce dependence on U.S. technology.
As a result, the global technology industry chain may be impacted and restructured. Some companies may have to choose to abandon their cooperation with Huawei to avoid US sanctions. Some countries and regions may be forced to choose between the two tech camps of the United States and China.
The escalation of the U.S.-China technology confrontation may also exacerbate the uncertainty of global science and technology innovation. The competition between the two countries in frontier fields such as artificial intelligence, 5G, and semiconductors will become more intense, and mutual sanctions and technological blockades may hinder the pace of global scientific and technological innovation.