BEIJING (AP) — China’s government on Tuesday accused Washington of pursuing “technological hegemony” following news reports that the United States may increase pressure on tech giant Huawei by blocking all access to American suppliers.
The possible move, reported by Bloomberg News, The Financial Times and The Wall Street Journal, would tighten restrictions imposed in 2019 that limit Huawei’s access to processor chips and other technology. The company, which makes network equipment and smartphones, was allowed to buy some less-advanced components.
Huawei Technologies Ltd., China’s first global technology brand, is at the center of the conflict between Washington and Beijing over technology and security. US officials say Huawei is a security risk and could facilitate Chinese espionage, a charge the company denies.
“China is very concerned by the reports,” said a Foreign Ministry spokeswoman, Mao Ning. She accused Washington of “overstretching the concept of national security and abusing state power” to crack down on Chinese competitors.
“Such practices are contrary to the principles of the market economy” and are “blatant technological hegemony,” Mao said.
Mao said Beijing would “uphold the legitimate rights” of its companies, but gave no indication of how the government might respond. Beijing has made similar statements after past US actions against its companies, but often does nothing.
A ban on sales of advanced US processor chips and music, maps and other services by Alphabet Inc.’s Google unit crippled Huawei’s smartphone business. The company sold its low-end Honor brand of smartphones to revive sales by separating it from sanctions on its parent company.
The Commerce Department has agreed to grant export licenses to US companies to allow them to sell less-advanced chips and other technology to Huawei that were deemed not to pose a security risk. That followed complaints that vendors would lose billions of dollars in annual sales.
The Biden administration is considering no longer issuing such licenses, though no decision has been made, news outlets reported, citing unnamed people familiar with the official deliberations.
Huawei has been quick to remove US components from its network and other products and has launched new business lines serving factories, self-driving cars and other industrial customers. The company hopes they will be less vulnerable to US pressure.
Huawei says its business is starting to pick up.
“In 2020, we successfully exited crisis mode,” Eric Xu, one of three Huawei executives taking turns as chairman, said in a December letter to employees. “American restrictions are now our new normal and we are back to normal.”
Revenue last year was forecast to be little changed from 2021 at 636.9 billion yuan ($91.6 billion), Xu said.
