The US extends ban against Huawei: China to label Apple and Qualcomm as ‘unreliable entity’
Huawei is infamous for security relates issues. It has already been banned by the U.S. government from supplying 5G technology to US telecom providers citing security and data leak issues. However, things heated up quite a bit last week as the US extended the ban against Huawei for another year. A couple of weeks ago Huawei development team submitted a patch to the Linux Foundation with a ‘trivial vulnerability.’ When the vulnerability was discovered, Huawei, as always, denied its involvement in the patch and said that its employees may be responsible.
According to Android Authority, China could label big US technology giants like Apple, Qualcomm, Boeing, and Cisco as an unreliable entity.
China has not yet released an official statement on the US companies but a source told Global Times that “China will take forceful countermeasures to protect its own legitimate rights.” These measures could include “imposing restrictions on or launching investigations” against the likes of Apple and Qualcomm.
Well, Qualcomm has a giant userbase in China, but the likes of Apple in china have seen a downturn as only 7% of Apple smartphones have been shipped to China in the Q1 of 2020. While if you look at Qualcomm it may cause some serious issue as expanding its 5G business is concerned.
Why China could list the US Tech giants in Unreliable entity
After the one year ban of Huawei from the US supply chain, the US has extended the ban for one more year as we said before. However, there is something more than the ban, The US government changed a rule that will result in the inability of Huawei to receive its most powerful chips without U.S. permission. According to the new rule, the companies will now need to seek permission for shipping the chips to Huawei.
An anonymous Chinese insider stated,
China will launch rounds of endless investigations on those firms, just like swords hanging over their head. It will dampen investors’ confidence and squeeze their income in the Chinese market. It will also inflict a chain reaction on various upstream and downstream players in US chip production.