The Trump administration on Friday moved to block shipments of semiconductors to Huawei Technologies from global chipmakers, in an action that could ramp up tensions with China.
The U.S. Commerce Department said it was amending an export rule to “strategically target Huawei’s acquisition of semiconductors that are the direct product of certain U.S. software and technology.”
The department added the “announcement cuts off Huawei’s efforts to undermine U.S. 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 and Qualcomm.
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 U.S. software and technology to design semiconductors, the Commerce Department said, despite being placed on a U.S. economic blacklist in May 2019.
Under the rule change, foreign companies that use U.S. chipmaking equipment will be required to obtain a U.S. license 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 U.S. software and technology, it would need to receive licenses from the Commerce Department.
National security concerns
The rule change is to “prevent U.S. technologies from enabling malign activities contrary to U.S. national security and foreign policy interests,” Commerce Secretary Wilbur Ross said in a statement, adding Huawei and its affiliates “have stepped-up efforts to undermine these national security-based restrictions.”
The Commerce Department said the rule will allow wafers already in production to be shipped to Huawei as long as the shipments are complete within 120 days from Friday. Chipsets would need to be in production by Friday or they are ineligible under the rule.
The United States placed Huawei and 114 affiliates on its economic blacklist citing national security concerns. That forced some U.S. and foreign companies to seek special licenses from the Commerce Department to sell to it, but China hawks in the U.S. government have been frustrated by the vast number of supply chains beyond their reach.
Separately, the Commerce Department extended a temporary license that was set to expire Friday to allow U.S. companies, many of which operate wireless networks in rural America, to continue doing business with Huawei through Aug. 13. It warned it expected this would be the final extension.
Huawei jialat liao, even Taiwan is casting it aside......
Huawei says 'survival' at stake after US chip restrictions
Huawei on Monday assailed the latest US move to cut it off from semiconductor suppliers as a "pernicious" attack that will put the Chinese technology giant in "survival" mode and sow chaos in the global technology sector.
The Commerce Department said on Friday it was tightening sanctions on Huawei -- seen by Washington as a security risk -- to include denying it access to semiconductor designs developed using US software and technology.
"The decision was arbitrary and pernicious and threatens to undermine the entire (technology) industry worldwide," Huawei said in a statement.
Huawei has largely weathered an escalating 18-month campaign by the Trump administration to isolate it internationally.
But it "will inevitably be affected" by the new American salvo, rotating chairman Guo Ping said at an annual summit of technology analysts that Huawei organises at its headquarters in the southern Chinese city of Shenzhen.
- Survival mode -
"Survival is the key for us now," Guo said, issuing an appeal to Huawei's suppliers and customers worldwide to stand with it.
He declined to give a detailed forecast of the impact when asked by journalists.
But the Huawei statement said the US decision "will have a serious impact on a wide number of global industries" by creating uncertainty in the chip sector and technology supply chains.
US officials said Huawei had been circumventing sanctions by obtaining chips and components that are produced around the world based on American technology.
Washington last year said it would blacklist Huawei from the US market and from buying crucial American components, though it has extended a series of reprieves to allow US businesses that work with Huawei time to adjust.
On Friday it extended this reprieve by another 90 days but said these exceptions are not likely to be extended further.
Commerce Secretary Wilbur Ross had said that even as Huawei seeks to develop its own components in response to US sanctions, "that effort is still dependent on US technologies."
US officials accuse Huawei, the world's biggest supplier of telecom network equipment and number two smartphone manufacturer, of stealing American trade secrets and say it could allow Beijing to spy on global telecoms traffic.
Huawei strenuously denies the charges, saying the United States has never provided any proof of a security threat.
The sanctions against the company have been a key driver of heightened US-China trade tensions.
China's Ministry of Commerce on Sunday warned it would take unspecified "necessary measures" to protect Huawei.
US officials said the new rules would have a 120-day grace period.
A senior State Department official said the move would not necessarily deny Huawei access to these products but require a license allowing Washington to keep track of the technology.
- US trying to 'crush' rivals -
Huawei is poised to become a global leader in the coming advent of fifth-generation, or 5G, wireless networks and Washington has lobbied other countries to shun Huawei gear over potential security risks.
China's government has poured money into developing home-grown semiconductors -- the building blocks of tech -- but it still lags behind the US, Japan and South Korea, which analysts say is a glaring Achilles heel for Chinese companies like Huawei.
Huawei said the US was "leveraging its own technological strengths to crush" foreign companies.
The resulting disruptions to supply chains will ultimately harm US interests, it added.
Declaring Huawei was "taking the lead" in global tech, Guo suggested that Washington's pressure was fuelled by fear that the United States was falling behind technologically.
"Any other country or company with more advanced technologies may put US supremacy at risk," he told the industry conference.
https://news.yahoo.com/huawei-says-pernicious-us-chip-restrictions-threaten-global-084816226.html
華為黯然回應制裁 士可殺不可辱
中美角力，华为会死掉吗？
‘We have dirt on Trump’: dark web hackers demand huge ransom
A notorious hacking group claims to have “dirty laundry” on President Donald Trump and have threatened to publish it next week if one of the biggest cyber ransoms ever isn’t paid.
Cyber extortionists stole a trove of private data from US entertainment law firm last week Grubman Shire Meiselas & Sacks, before publishing documents relating to Lady Gaga and Madonna on the dark web.
In a blog post on Thursday on the dark web, hacker collective ‘REvil’ – who are holding thousands of the law firm ‘s documents hostage – said Mr Trump will be the next subject of a data dump.
“The next person we’ll be publishing is Donald Trump,” the blog post said.
“There’s an election race going on, and we found a ton of dirty laundry on time.”
The hackers added, “And to you voters, we can let you know that after such a publication, you certainly don’t want to see him as president. Well, let’s leave out the details. The deadline is one week.”
The White House has been contacted for comment.
In a statement provided to Variety through a representative, Grubman Shire Meiselas & Sacks said, “Our elections, our government and our personal information are under escalating attacks by foreign cyber criminals.
“Law firms are not immune from this malicious activity. Despite our substantial investment in state-of-the-art technology security, foreign cyber terrorists have hacked into our network and are demanding $US42 million ($A65 million) as ransom. We are working directly with federal law enforcement and continue to work around the clock with the world’s leading experts to address this situation.”
The statement continued, “The leaking of our clients’ documents is a despicable and illegal attack by these foreign cyber terrorists who make their living attempting to extort high-profile US companies, government entities, entertainers, politicians, and others.”
According to the firm, other organisations and companies including HBO, Goldman Sachs and the Department of Defence have been victims of similar cyber attacks.
It isn’t clear what info the hackers might have on Mr Trump or how it pertains to Grubman Shire Meiselas & Sacks, which is not known to have represented the US President in any legal matter.
https://thenewdaily.com.au/news/world/us-news/trump-news/2020/05/16/trump-ransom/
WWIII imminent?