August 18, 2020

The US government's latest crackdown on chip supplies for Huawei Technologies Co sparked widespread backlash from Chinese officials and industry leaders on Tuesday, underscoring the force of mounting opposition against an increasingly erratic US administration whose reckless words and deeds could cause deep disruptions and losses for global industries and commerce. 

In Beijing, Chinese officials harshly criticized the new US rules that essentially seek to cut off Huawei from foreign chip suppliers, and vowed to take "necessary" measures to protect Chinese interests. On the island of Taiwan, share prices of major chipmakers tanked as companies weigh up on potential impacts from the new rules. In the US, industry leaders expressed "concern" and warned of "significant disruptions" to the US semiconductor industry.

Huawei was noticeably silent as of press time on Tuesday. Industry insiders said that while the move could deal a major blow to the Chinese telecom giant, it will not be existential as the US intended. For starters, the company had time to draw up contingency plans for such a scenario; also, the US government left open the possibility of reprieve for certain US suppliers, as no detailed action plan was given, experts noted.

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