US Lawmakers Push for Stricter Controls on Chip Equipment Sales to Huawei
US lawmakers are urging President Joe Biden’s administration to further restrict the sale of American chip-making equipment to Huawei Technologies Co. This move aims to hinder the Chinese telecom giant’s progress in semiconductor manufacturing. A letter sent to US Secretary of Commerce Gina Raimondo by leaders of the US House of Representatives’ China Select Committee expressed concerns about Huawei’s access to critical technology.
The letter identifies several Chinese companies, such as Shenzhen Pengxinxu Technology Co, Shenzhen SwaySure Technology Co, and Qingdao Sien Technology Co, as potential members of Huawei’s “clandestine network.” The US and its allies have already restricted the sale of advanced chips and manufacturing tools to China, affecting companies like Applied Materials Inc, Lam Research Corp, and KLA Corp from the US, as well as ASML Holding NV from the Netherlands and Tokyo Electron Ltd from Japan.
Washington has also imposed additional sanctions on Chinese companies, including Huawei and its partner Semiconductor Manufacturing International Corp, preventing them from acquiring American technology without a US government license. While some Chinese firms can still access mature chip equipment, lawmakers argue for further action.
Committee Chairman John Moolenaar and ranking member Raja Krishnamoorthi emphasized the need to deny Huawei access to US technology, warning that inaction could benefit a select group of US chip tool manufacturers and harm global chipmakers. In response, Chinese Ministry of Foreign Affairs spokeswoman Mao Ning stated that China opposes the US’s actions, which she claims undermine normal cooperation between the two countries.
The US-led initiative aims to prevent China from developing a cutting-edge semiconductor industry that could boost its military capabilities.
Doubts Revealed
US Lawmakers -: US lawmakers are people who make laws in the United States. They are like the members of parliament in India.
Biden -: Biden refers to Joe Biden, who is the President of the United States. He is like the Prime Minister of India but for the US.
Chip Equipment -: Chip equipment refers to machines and tools used to make computer chips. These chips are tiny parts that help electronic devices work, like in phones and computers.
Huawei -: Huawei is a big company from China that makes phones and other electronic devices. It’s like Samsung or Xiaomi in India.
Semiconductor -: A semiconductor is a special material used to make computer chips. These chips are important for running electronic devices.
Gina Raimondo -: Gina Raimondo is the US Secretary of Commerce. She is responsible for trade and business matters in the US, similar to a minister in India.
Applied Materials and ASML -: Applied Materials and ASML are companies that make machines for producing computer chips. They are important in the technology industry.
National Security -: National security means keeping a country safe from threats. It’s like making sure everyone in the country is protected from harm.
