China’s Huawei Technologies rotating chairman Eric Xu, said he is aware of the potential for Washington to tighten restrictions on the company, including by stopping Taiwan Semiconductor Manufacturing Co from selling chips to Huawei. The Chinese government wouldn’t tolerate such action and it would irrevocably damage the global supply chain, Xu said in some of Huawei’s strongest comments against the Trump administration’s measures so far.
“If the Pandora’s box were to be opened, we’ll probably see catastrophic damage to the global supply chain — and it won’t just be one company, Huawei, destroyed,” Xu said after unveiling 2019 earnings. “I don’t think the Chinese government will just watch and let Huawei be slaughtered on a chopping board. I believe the Chinese government will also take some countermeasures.”
China’s biggest tech company remains in Washington’s cross-hairs even as COVID-19 spreads across the globe.
The White House is reportedly considering imposing restrictions on the sale of semiconductors to Huawei by global corporations such as TSMC and Samsung Electronics Co, a move that would effectively deprive the Chinese giant of the most advanced chip technology. That would escalate already damaging restrictions on Huawei, which reported net profit grew 5.6% – the slowest pace of bottom line growth in three years.
“Why can’t China ban the use of American 5G chips, base stations, smartphones and other smart devices based on the same network security reasons?” Xu said, adding he couldn’t confirm reports about curbs on TSMC.
