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China Says U.S. Rules Targeting Huawei May Threaten Supply Chain

China warns of global supply chain disruptions due to Trump’s export restrictions.

China Says U.S. Rules Targeting Huawei May Threaten Supply Chain

(Bloomberg) --

China said new U.S. export restrictions targeting companies including Huawei Technologies Co. may threaten the global supply chain.

Beijing opposes the new U.S. rules and will take all necessary measures to defend the rights and interests of Chinese companies, the Ministry of Commerce said in a statement Sunday. It urged Washington to help create conditions for normal trade and cooperation between enterprises.

The U.S. on Friday moved to prevent sales to Shenzhen-based Huawei by chipmakers using American technology. The Commerce Department said it would require licenses before allowing U.S. equipment to be used by the Chinese company or its 114 subsidiaries, including its chip-design unit HiSilicon.

The move is designed to inhibit Huawei from producing and designing its own chips, a senior department official said. U.S. officials accused Huawei of being a security threat tied to the Beijing government, an allegation the company denies.

The new rules require any foreign chipmaker that uses American gear to get a license before they can sell to companies on a U.S. blacklist, a roster that includes Huawei and other prominent Chinese tech giants such as SenseTime Group Ltd. and Megvii Technology Ltd.

©2020 Bloomberg L.P.

With assistance from Bloomberg