Embargo on Huawei: China prepares for the worst and thinks of reprisals – DigitalVersus

Following the North American restrictions imposed on Huawei and TSMC, the Chinese government is considering "countermeasures". In the crosshairs, Boeing, Apple and Qualcomm could be penalized.

“Give up fantasies, get ready for the real battle”. “We have no other way than that of victory”. This weekend, these slogans have multiplied on the forums of Huawei employees. Their appearance of course echoes the US embargo now affecting TSMC, the leader in semiconductors. A new thorn in the side of the Chinese giant, which China suffers with bitterness, again raising the possibility of reprisals.

Apple or Boeing in collateral damage?

In a statement issued on Sunday, May 17, the Chinese Foreign Ministry thus repeats the eternal position of its government, regretting a “Unreasonable repression” facing which the government “Firmly Defend the Legitimate Rights and Interests of Chinese Businesses”. In the process, a source of Global Times, Chinese media close to the administration of Xi Jinping, ensures that “China to take tough countermeasures to protect its rights”. The latter could threaten various American companies such as Qualcomm, Cisco, Apple or Boeing. So many firms which derive a large part of their income from the activity developed in China. Qualcomm thus concentrates 65% of its turnover in the Middle Kingdom.

In the process, the long article in the Global Times mentions the possibility of a clear separation between the American and Chinese industries, which would be to the detriment of the first. “With the massive presence of production chains in China, relocation to the West, as the US government promises, does not make sense”, thus assures Han Xiaomin, director of a Beijing consulting company, interviewed by the Global Times.

On the way to decoupling?

According to him, such a decision would push Apple to cancel the launches of its next two generations of iPhone to go directly to the iPhone 14. The idea is not new and proves all the economic strength of China in these negotiations.

Finally, the Global Times indicates that more and more Chinese companies are now without American components. Huawei has thus chosen to cut ties with a number of Western suppliers to favor Asian firms, even if it means modeling them according to its needs. A tactic that seems to be bearing fruit, since the 5G equipment of the Chinese giant, as well as its Mate 30 Pro, are devoid of parts from the West. But independence is not total; for its part, the P40 Pro still has it.

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