US pressure on Huawei is pure economic bullying: China FM
May 22 2019 11:43 PM
Huawei

Reuters/Beijing

The Chinese government's top diplomat Wang Yi said on Wednesday US pressure on Chinese firms such as tech giant Huawei Technologies Co Ltd is economic bullying and a move to try to prevent the country's development process.

"The use of US power to suppress China's private enterprises, such as Huawei, is typical economic bullying," Wang said in a statement on the website of China's foreign ministry.

Wang, who is the Chinese government's top diplomat and state councillor, also said in another statement that China's door would always be open to the US for trade negotiations, but would not accept any unequal agreements.

The world's two largest economies have escalated tariff increases on each other's imports after talks broke down to resolve their dispute, and the acrimony has intensified since Washington last week blacklisted Chinese telecom equipment and handsets company Huawei.

A report from London adds: Huawei said it was confident it could resolve the situation that has seen its chip design partner ARM suspend collaboration after the United States said it could block the Chinese company's access to US technology.

"We value our close relationships with our partners, but recognise the pressure some of them are under, as a result of politically motivated decisions," a Huawei spokesman said.

"We are confident this regrettable situation can be resolved and our priority remains to continue to deliver world-class technology and products to our customers around the world."

Huawei, in common with Apple and chipmakers such as Qualcomm, uses British chip designer ARM blueprints to design the processors that power its smartphones. It also licenses graphics technology from the Cambridge-based company.

"ARM is complying with all of the latest regulations set forth by the US government," an ARM spokesman said in a statement. "No further comment at this time."

The United States blocked Huawei from buying US goods last week, jeopardising ties with Google, which provides the Android operating system and services like Gmail and Google Maps, as well as hardware partners such as ARM.

It temporarily eased restrictions on Huawei on Tuesday, granting it a licence to buy US goods until August 19, meaning that updates of Google apps can continue until then.

The BBC reported earlier on Wednesday that ARM, which is owned by Japan's Softbank, had instructed employees to halt "all active contracts, support entitlements, and any pending engagements" with Huawei after the United States added Huawei to a list of companies with which US firms could not do business.

ARM said in an internal company memo that its designs contained technology of US origin, the BBC reported.

Huawei's international partners are moving to distance themselves from the Chinese company until there is clarity over its relationship with US technology partners that provide the apps and services that are crucial for consumers.



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