Tensions between the US and China is once again getting heated up. This time the US has moved to blacklist Chinese tech giant Huawei from Global Chip suppliers.
The US under Trump administration on Friday moved to block shipments of semiconductors to Huawei Technologies from global chipmakers, in an action that is sure to escalate tensions with China.
It should be recalled that last year US Department Of Commerce placed Huawei on it so called entity list banning US companies from Selling hardware and Software to Huawei.
Well today the U.S. Commerce Department said it was amending an export rule to “strategically target Huawei’s acquisition of semiconductors that are the direct product of certain U.S. software and technology.”
If this new rule goes into effect, all foreign companies even those that use chip making equipment from the US will require a license from US before they can supply chips to Huawei and its affiliates.
This new rule strategically targets Hauwai, and could affect the company.
The reaction from China was a swift one, they are threatening retaliations on major US companies that also rely on their industries.
Some of the measures to be taken by China include imposing restrictions on US companies such as Apple Inc, Qualcomm Inc, Cisco System Inc, and also suspending purchase of Boeing Planes.