China threatens retaliation over export control aimed at Huawei in US

WASHINGTON/BEIJING: China on Saturday hit back at the Donald Trump government for announcing new export controls aimed at limiting Chinese technology giant Huaweis access to semiconductor technology, calling it Americas "unreasonable suppression" of Huawei.

Describing the move as the destruction of "global manufacturing, supply and value chains", the Chinese Foreign Ministry said that Beijing would "firmly uphold Chinese firms' legitimate and legal rights and interests".

"We urge the US side to immediately stop its unreasonable suppression of Huawei and Chinese enterprises," said the Foreign Ministry after the new rule barred semiconductor-makers that use US technology and software in chip design from shipping to Huawei without the US government's permission.

According to South China Morning Post, new restrictions will cut off Huawei's access to one of its major suppliers, Taiwanese chip maker TSMC, which also manufactures chips for Apple and other tech firms and on Friday announced to build a $12 billion chip manufacturing plant in the state of Arizona.

Global Times said in a report that "Beijing was ready to target Apple, Qualcomm, Cisco and Boeing in retaliation for the restrictions on Huawei".

The tightened controls come a year after the US moved to cut off Huawei, the world's second largest smart phone maker, from access to US-made semiconductor chips, which form the backbone of most computer and phone systems.

In response, the company and others in China accelerated efforts to manufacture such chips domestically.

US Commerce Department Secretary Wilbur Ross said that those efforts were "still dependent on US technologies", and accused Huawei of taking steps "to undermine" earlier export controls.

"This is not how a responsible corporate citizen behaves," Ross said. "We must amend our rules exploited by Huawei... and prevent US technologies from enabling malign activities contrary to US national security and foreign policy interests." 

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