The Economist August 22nd 2020 pp54 Sino-American tech war “No more quarter” “America closes the last remaining loophole in its hounding of Huawei”.
Huawei’s telecom being high quality and low cost are popular worldwide but due to Department of Commerce (DOC) intervention they are banned in America “over (unsubstantiated) fears that it could be used by spies in Beijing to eavesdrop on Americans.” The POTUS has pushed “allies like Australia and Britain to do the same.” To further curtail Huawei, the DOC has stopped American companies from producing or selling any type of Huawei chip or other chip made in America as well. What remains, if a company obtains a DOC license it can still sell components to Huawei.
The immediate cost is $19Bn in American goods sold to Huawei annually. Others worry this will stem investment in American technology companies. If China retaliates it “would devastate the supply chains of Apple and other American Technology firms.” The Chinese appear patient perhaps hoping Biden will be elected and be more reasonable.