The economic war between the USA and China is plaguing Huawei

  •   10/08/2020 - 15h37
  •   HARMANT Adeline

While the United States has decided to deprive Chinese companies of their American suppliers, the Huawei group will soon run out of its high-end chips. This leader in mobile telephony will thus have to cease production of its Kiri in-house processors before 15 September next.  

The economic war between the USA and China is plaguing Huawei
Image copyright: Karlis Dambrans

A production that depends on American suppliers:

Indeed, while Huawei's Kirin chips are designed by this company, their production depends on American manufacturers. However, Huawei currently has no other means of producing equivalent chips.

It is thus last Friday that the president of the consumer division of the Chinese group announced that because of this second salvo of sanctions from the United States, the group's chip manufacturers have not accepted orders beyond May 15. Production will stop on September 15 and will signal the end of Kirin high-end chips, preventing the production of new smartphones.

However, the situation does not seem likely to improve for the Chinese giant, which is nevertheless trying to deny the accusations of espionage made against it by the American government. Indeed, the administration of Donald Trump is currently multiplying new measures to limit the business capacities of the Chinese in the country. The Chinese action could therefore pay the consequences.

 

The effect of Trump's decisions in the midst of a trade war :

Recall that recently, the Trump government announced a new initiative to limit the presence and influence of Chinese companies in the United States under the name of Clean Network, or "Réseau Propre" in French. This new program thus targets in particular telecommunication technologies, software shops, applications and services in the cloud.

The government thus intends to commit the United States to take steps to purge its software shops of applications rich in viruses, propaganda and misinformation.The head of US diplomacy is quoted as saying that applications such as TikTok, WeChat and others pose significant threats to the personal data of US citizens and are tools of censorship by the Chinese government.

It also recalls the Chinese initiative that US companies should stop distributing applications on the phones of companies like Huawei in order to penalize their cooperation with the Chinese authorities. It should also be recalled that the Huawei group has already been deprived of its partnership with Google for several months now.

According to the American government, the Clean Network program aims to prevent the storage of data of American citizens on servers of Chinese companies such as Alibaba, Baidu or Tencent. The US even cites a risk of theft of the research for the COVID-19 vaccine and assures that the country will also closely monitor the undersea cables that are the backbone of the Internet, with the aim of preventing Chinese interference.