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US lawmakers seek to ban chip sales to China’s Huawei and ZTE for ‘violating American sanctions’

F-22Raptor

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A bipartisan group of US lawmakers introduced bills on Wednesday that would ban the sale of US chips or other components to Huawei, ZTE or other Chinese telecommunications companies that violate US sanctions or export control laws.

Senator Tom Cotton and Representative Mike Gallagher, both Republicans, and Senator Chris Van Hollen and Representative Ruben Gallego, both Democrats, introduced the measures, which would require the US president to ban the export of US components to any Chinese telecommunications company that violates US sanctions or export control laws.

The bills specifically cite ZTE and Huawei, both of which are viewed with suspicion in the United States because of fears that their switches and other gear could be used to spy on Americans. Both have also been accused of failing to respect US sanctions on Iran.

Huawei is the world’s biggest producer of telecommunications equipment.

“Huawei is effectively an intelligence-gathering arm of the Chinese Communist Party whose founder and CEO was an engineer for the People’s Liberation Army,” Cotton wrote in a statement.

“If Chinese telecom companies like Huawei violate our sanctions or export control laws, they should receive nothing less than the death penalty – which this denial order would provide.”

Huawei’s founder, Ren Zhengfei, denied this week that his company was used by the Chinese government to spy.

Canada detained Ren’s daughter, Sabrina Meng Wanzhou, who is Huawei’s chief financial officer, on December 1 at the request of US authorities investigating an alleged scheme to use the global banking system to evade US sanctions against Iran.

For its part, ZTE agreed last year to pay a US$1 billion fine to the United States that had been imposed because the company breached a US embargo on trade with Iran.

As part of the agreement, the US lifted a ban in place since April that prevented ZTE from buying the US components it heavily relies on to make smartphones and other devices.

https://www.scmp.com/news/china/dip...ers-seek-ban-chip-sales-chinas-huawei-and-zte
 
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America bans all chips to China. And China will ban all chips from US and all products that contain US chips inside. China may temporarily lose some high end products oversea market. Low end products are still very competitive in world market. We can survive. US chip supplier will lose technical advantage because they don't have enough profit to sustain R&D.
 
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Bipartisan? So there is convergence across spectrum as far as China is concerned.
 
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And American chips need Chinese components. Americans can't survive without China. This ain't the 1970s anymore.
 
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Bipartisan? So there is convergence across spectrum as far as China is concerned.

Yeah that's the most interesting part of this development. This is going to continue regardless of who is in office.
 
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