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US-China tech war
WorldUnited States & Canada

US national security under threat due to Huawei ban, technology companies warn Trump administration

  • Ban may slow research and development and harm US military technology, which relies on fast and capable chips

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A Huawei logo outside its headquarters in Shenzhen. Photo: Reuters
The Washington Post
US technology companies have told the Commerce Department that the Trump administration’s ban on sales to Chinese tech giant Huawei could significantly harm their bottom lines and might damage their ability to develop new technological innovations, including those needed by the US military.

The companies are making the claims in applications for licences that would let them do business with Huawei after the prohibition goes into effect in August, according to people familiar with the licensing process.

The Department of Commerce in Washington. File photo: Alamy
The Department of Commerce in Washington. File photo: Alamy
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Huawei is the second largest mobile phone maker in the world and a leading maker of telecommunications equipment crucial to the roll-out of the next generation of wireless technology known as 5G. It is also the third largest buyer of US-made computer chips, according the Semiconductor Industry Association.

The Trump administration placed Huawei on the Commerce Department’s entity list in May for violating US sanctions on Iran, prohibiting US-based companies from doing business with it. It then granted a 90-day reprieve of the effective date to soften the blow to US companies.

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