Huawei had announced its financial report for the year 2019, earlier today (31st March 2020). After this, a senior executive from the company commented on the ongoing news regarding the US limiting TSMC chip supply to Huawei.
For those unaware, the United States may undertake measures to limit the sales of chipsets from TSMC (Taiwan Semiconductor Manufacturing Company) to Huawei. In other words, this will limit the Chinese tech giant’s global chip supply which is integral to its operations since it has its own proprietary Kirin processors alongside other custom made chips for its AIoT portfolio and more.
According to Xu Zhijun, the Deputy and Rotating Chairman of Huawei, “The Chinese government will not let Huawei be dominated or ignored. I believe the Chinese government will take countermeasures.” This means that if the US Government measures are implemented, then China will have no choice but to take similar measures against certain companies as well. Meaning, another trade war could start from this ordeal.
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Xu Zhijun read the report from Reuters and People’s Daily and thinks it endangers the global ecology. He called out the US for arbitrarily modifying corporate product specifications which could lead to some devastating effects, or what Xu refers to as Pandora’s Box (a mythical object that contained human evils and plagues). The senior executive believes the impacts of this could potentially harm companies across the globe and their supply chains and not just Huawei.
Xu Zhijun further added that he believes” this message is false, otherwise there will be endless troubles. Players at any stage of the global industry chain will have a hard time staying alone.” Additionally, the Chinese government taking similar actions might lead to further tensions between the two nations and their trade regulations.
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(Via)
