The trade war situation between US-China is not slowing down, and because the current pandemic situation in the US is getting harder. The recent report shows that the US government decided to put a stop on exporting semiconductors to Chinese tech giant company Huawei. Now the decision to cut off the supply of semiconductors to Huawei and helping Tawinese semiconductor producing companies to build a plant in Arizona is making China furious. China has also decided to threaten US companies like Apple, Qualcomm, and Cisco by putting them on the “unreliable entities” list.
The US government banned Huawei, but for semiconductor parts, they were allowed to do trade at prescribed terms. Domestic US companies who want to sell semiconductors to Huawei are required to get an exclusive license. However, some security analysts from the US government said that Huawei is getting benefits from this trade deal, and they are using US technology to build more products. Despite putting so many restrictions, Huawei managed to undermine US security, and on that fear, the government decided to stop the export of semiconductors also. White House National Security Council said this new rule would prevent Huawei from using their technology to go against the US and its allied countries.
The Security Council seemed to be quite angry at Huawei because they stated they wouldn’t allow Huawei to misuse export laws and technology against national security. Security analysts said this move is required to protect national security because the Chinese government uses Huawei for its own benefits. The US has also tried to convince its allied countries to ban Huawei by convincing them about the security threat it poses on a national level. Huawei is facing lots of issues worldwide, considering the current pandemic situation.