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Huawei Says China Will Retaliate Against US For Any New Sanctions On The Firm

Huawei Says China Will Retaliate Against US For Any New Sanctions On The Firm
The American trade restrictions imposed on the Chinese tech company Huawei, which severely impacted the sales of the company in 2019, will make 2020 one of the most difficult year years for it, the company warned on Tuesday.
The company also predicted that retaliatory measures will also be taken by the Chinese government against the United States.
The warning issued by the largest telecoms equipment maker of the world came as it also reported its worst year in three years in terms of annual profit growth. The restrictions imposed on the company by the US to prevent it from buying chip from American companies could be retaliated against by China in the form of restrictions imposed on selling of products of American companies in the Chinese market as well as by changing to suppliers in China and South Korea, Huawei said.
"The Chinese government will not just stand by and watch Huawei be slaughtered on the chopping board," Chairman Eric Xu told reporters at the launch of Huawei's annual report. "Why wouldn't the Chinese government ban the use of 5G chips or 5G chip-powered base stations, smartphones and other smart devices provided by American companies, for cybersecurity reasons?"
Huawei was put on the so called list of entities of the US Commerce Department in May last year over suspicion that the products manufactured and sold in the US by Huawei contained backdoors that could be exploited by Chinese agencies to spy on Western countries. This ban effectively prevented any American company to do any business with the Chinese company as well as ban the sale of nay new products by the company in the US market. According to reports, the US President Donald Trump's administration is also slated to impose more punitive measures on the company in an effort to restrict the supply of chip to the Chinese firm.
All such allegations have been repeatedly refuted by Huawei.
The aim of the change in rules by the US administration is to prevent the sale of chip to Huawei by the Taiwan Semiconductor Manufacturing Co, the largest chip manufacturer of the world and one of the most important producer of chips for Huawei's HiSilicon division.
"Even if this situation you mentioned happened, Huawei and also other Chinese companies can choose to buy chipsets from Samsung from Korea, MTK from Taiwan, and in China, and use those companies to develop chips," Huawei's Xu said.
If the US imposed further restrictions on the company, global tech supply chains could be destroyed, warned Xu, while also predicting that the US sanctions on it will make 2020 the most difficult year yet for the company.
There was a 5.6 per cent growth in the net profit of the company for 2019 at 62.7 billion yuan ($8.9 billion which was the slowest for the company in three years, Huawei said. the net profit of the company growth of the company last year was at 25 per cent.

Christopher J. Mitchell

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