Despite stringent efforts to restrict the export of chips to Chinese firms, reports indicate that Huawei is still managing to access components through strategic partnerships with companies like Pengzinzu, SwaySure Technology, and Qingdao Si’En. This “clandestine network” of organizations is believed to be facilitating Huawei’s access to restricted chips, despite sanctions imposed by the US and its allies.
House China Select Committee Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi have expressed concerns about Huawei’s circumvention of US chip sanctions in a recent letter to Commerce Secretary Gina Raimondo. The US and its allies have imposed significant restrictions on the sale of advanced chips and manufacturing equipment to China, but these efforts have not been entirely successful.
Chinese firms have found ways to access advanced semiconductors, including Nvidia’s A100 and H100 chips, through cloud computing services like AWS. Huawei’s latest smartphone, powered by a seven-nanometer chip from Semiconductor Manufacturing International Corp (SMIC), has triggered calls for stricter controls to prevent Chinese companies from accessing US technology.
Despite the challenges of regulating chip exports, efforts to deny Huawei and similar firms access to US technology continue. Concerns have also been raised about delayed processes that have allowed Chinese companies to stockpile advanced equipment. On the other hand, companies like ASML, which relies on China for one-fifth of its revenue, are worried that export sanctions may have a significant impact on their business.
Chinese Foreign Ministry spokeswoman Mao Ning has criticized the US for overstretching the concept of national security and hindering normal cooperation between the two countries. The Commerce Department has acknowledged receipt of the letter from Moolenaar and Krishnamoorthi and has pledged to respond through appropriate channels.
In conclusion, the ongoing challenges in regulating chip exports to Chinese firms highlight the complex dynamics of international trade and technology transfer. It is crucial for policymakers to address these issues to safeguard national security interests and promote fair competition in the global marketplace.
