Chipmakers' lobbying has a major impact on Huawei sanctions relief
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Regarding sanctions against Huawei, the US government 'allows export only for low-tech products that do not affect security' 'Semiconductor can be sold to Huawei if it is a small scale of less than $ 1 billion a year' Announced that it would. It has become clear from information from officials that this sanctions relief is the result of lobbying chip makers in the United States.
How US Chipmakers Press Trump to Ease China's Huawei Ban-Bloomberg
https://www.bloomberg.com/news/articles/2019-07-02/how-us-chipmakers-pressed-trump-to-ease-huawei-export-controls
By having signed the presidential decree of 'prohibiting trade of foreign products with risk of information communication' in May 2019, Trump of the United States of America, Google for providing OS · Android to smartphones made by Huawei, chips for smartphones Intel and Qualcomm, which manufactures parts such as sets, announced a series of suspension with Huawei. In addition, although temporarily the world's largest academic society announced that 'the ban on peer review by Huawei scientists is prohibited' , various industries in the US and abroad were affected by the presidential decree, but July 2nd , President Peter Navarro announced that Huawei will only allow exports to 'low-tech products that do not affect security'. Although limited, sanctions have been eased.
In response, news media Bloomberg reporter Jenny Leonard and business columnist Ian King wrote, 'The sanctions relief was a success of the lobbying of American chip makers.' According to the two, the US semiconductor industry continued to insist on the US Department of Commerce through meetings and letters how the sanctions hurt the American economy and lead to a national crisis.
Semiconductor Industry Industry Association The Semiconductor Industry Association (SIA) is an organization represented by companies such as Intel, Broadcom and Qualcomm. According to Bloomberg, in May 2019, a representative chip maker will meet with Wilber Roth and Stephen Munushin of the US Department of Commerce, and listing Huawei in the ' Entity List ', a list of export-banned companies, would put the United States in It has become clear from the information of the concerned parties that it is said to be in danger.
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The trade war led by Huawei has put American chip makers in a tough situation. That's because China is the largest market that accounts for a third of chip manufacturers' total sales. The SIA stressed that not all exports to Huawei and its affiliates are security risky, and that Huawei itself can compensate for components by companies other than the United States. Chips are researched and developed at a high cost, and losing revenue can undermine America's competitiveness itself.
In a letter obtained by Bloomberg, “SIA has not only made it difficult for American semiconductor companies to do business in the world, but also put American companies in a position of 'dangerous and unreliable'. 'The impact will extend to national security.' According to the people involved in the negotiations, the chip industry's people throw Huawei even in the presence of ' choke points ', that is, exporting only chips, with the exception of software that integrates the chips into the engineer's support and devices. I argued that I could go down. It seems that what the industry group asked for was not 'to stop sanctions' but 'to limit the scope'.
This probably because the lobbying has paid off, after a meeting of the 2019 June 29, to place the Xi Jinping Jintao, Trump President announced its intention to admit some dealings with Huawei for the American companies.
Then, on 2 July Navarro said that Huawei's involvement in the 5G network is still a 'national security concern' but will sell 'a small amount of low-level chips' if China responds to trade negotiations I indicated that it was not a problem.
by Christoph Scholz
On the other hand, the Trump administration's aim is still unknown. President Trump says, 'I will decide what to do about Huawei when trade negotiations are final.'
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in Hardware, Posted by darkhorse_log