November 20, 2019, 17:33


China Set to Curb Key Technology Exports to US Amid Huawei Clampdown – Reports

China Set to Curb Key Technology Exports to US Amid Huawei Clampdown – Reports

The United States added Huawei to a trade blacklist last month, thereby barring American firms from selling components to the Chinese company without a government license.

China is building a management mechanism to protect its key technologies and curb exports to the United States following Washington’s crackdown on Huawei Technologies Co Ltd, Hu Xijin, the chief editor of Global Times, tweeted on Saturday, without citing any sources.

Meanwhile, Xinhua news agency reported that the National Development and Reform Commission (NDRC) would organise a study to establish a “national technology management list system” in order to “more effectively forestall and defuse national security risks”.

These developments come shortly after reports that China’s Commerce Ministry spokesman, Gao Feng, said that Beijing would draw up a blacklist of “unreliable” foreign companies and individuals that would include those who fail to comply with market regulations and damage the legitimate rights and interests of Chinese firms.

READ MORE: Despite Warnings of Huawei’s ‘Shoddy’ Security Standards, GCHQ Has History of Data Failures

In mid-May, US President Donald Trump issued an executive order blacklisting Huawei and its 70 affiliates, thereby banning American companies from selling components to the Shenzhen-based firm without a government license.

As a result, Google suspended operations with Huawei, including the transfer of all hardware, software, and technical services, except those publicly available via open source licensing, on 20 May.

At the time, Reuters cited an unnamed source as saying that following the decision, Huawei smartphones, which run on Google’s Android operating system, are expected to lose access to updates for certain apps and services, including the Google Play Store, Gmail, and YouTube, but the existing devices will be safe from future restrictions.

Over the past few months, the Chinese telecom giant has faced allegations that it has been spying on behalf of Chinese authorities and stealing commercial information. The tech titan has vehemently denied the accusations, insisting that it is independent from the government.

Tensions between Huawei and Washington come against the backdrop of the ongoing trade war between China and the US, which dramatically escalated after the Trump administration threatened to introduce 25 percent tariffs on Chinese goods.

The two countries have been embroiled in a trade dispute since 2018 when Trump slapped 25 percent tariffs on up to $50 billion worth of Chinese goods in a bid to fix what he has repeatedly described as Beijing’s “unfair trade practices”. From that point on, both sides have implemented several rounds of quid pro quo measures.

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