Huawei said Monday its business will “inevitably be affected” following the Trump administration’s latest attempt to restrict its global chip supplies to Huawei.
Guo Ping, the company’s rotating chairman said he’s “confident” solutions will be found during a speech given in the company’s headquarters in Shenzhen, China. Guo also said the company is committed to complying with US regulations.
His comments, along with a company statement released afterwards, mark Huawei’s first official responses since the Trump administration moved to block its global chip supply last week.
The new rules, which were unveiled by the Commerce Department, require overseas semiconductor firms that use US technology and equipment to apply for a license before selling to Huawei.
“The US is leveraging its own technological strengths to crush companies outside its own borders,” Huawei said in a statement on Monday. “This will only serve to undermine the trust international companies place in US technology & supply chains. Ultimately, this will harm US interests.”
Calling Washington’s new rules “pernicious” and “arbitrary”, the statement went on to warn that it threatens to undermine the global semiconductor industry and broader economy.
The is on top of a ban imposed on Huawei last year, which prohibits American companies from selling technology and parts to the Chinese company. That banearlier this month. Guo said the Huawei has responded to it by increasing spending into research and development.
In response to Washington’s new export controls, Taiwan Semiconductor Manufacturing (TSMC), the world’s largest contract chip maker, stopped taking new orders from Huawei, according to a report published earlier Monday by Nikkei Asia Review. TSMC dismissed the report as “purely market rumours,” according to Reuters.
The United States has long alleged that Huawei maintains a tight relationship with the Chinese government and that equipment from the company could be used to spy on other countries and companies. Huawei has repeatedly denied this.
In April, Huawei reported that revenue growth slowed sharply in the first quarter, amid pressure from the United States and the impact of the coronavirus pandemic.