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China says it’s opposed to the latest US rules against Huawei

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China’s commerce ministry said on Sunday it is firmly opposed to the latest rules by the United States against Huawei and will take all necessary measures to safeguard Chinese firms rights and interests.

The ministry said in a statement that it urges the United States to immediately stop the wrong actions.

On Friday, the Trump administration moved to block shipments of semiconductors to Huawei Technologies from global chipmakers.

The US Commerce Department said it was amending an export rule to “strategically target Huawei’s acquisition of semiconductors that are the direct product of certain US software and technology.”

The department added the “announcement cuts off Huawei’s efforts to undermine US export controls.”

The rule change is a blow to Huawei, the world’s no. 2 smartphone maker, as well as to Taiwan’s TSMC, a major producer of chips for Huawei’s HiSilicon unit as well as mobile phone rivals Apple Inc and Qualcomm Inc.

Huawei, which needs semiconductors for its widely used smartphones and telecoms equipment, is at the heart of a battle for global technological dominance between the United States and China.

The United States is trying to convince allies to exclude Huawei gear from next generation 5G networks on grounds its equipment could be used by China for spying. Huawei has repeatedly denied the claim.

Huawei has continued to use US software and technology to design semiconductors, the Commerce Department said, despite being placed on a US economic blacklist in May 2019.

Under the rule change, foreign companies that use US chipmaking equipment will be required to obtain a US licence before supplying certain chips to Huawei, or an affiliate like HiSilicon.

In order for Huawei to continue to receive some chipsets or use some semiconductor designs tied to certain US software and technology, it would need to receive licenses from the Commerce Department.

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