On Monday, Huawei assailed the latest US move to cut it off from semiconductor suppliers as a “pernicious” attack that will put the Chinese technology giant in “survival” mode and sow chaos in the global technology sector.

On Friday, the Commerce Department announced that it was tightening sanctions on Huawei – seen by Washington as a security risk – to include denying it access to semiconductor designs developed using US software and technology.

Huawei said in a statement that “The decision was arbitrary and pernicious and threatens to undermine the entire (technology) industry worldwide.”

Huawei has largely weathered an escalating 18-month campaign by the Trump administration to isolate it internationally.

But it “will inevitably be affected” by the new American salvo, rotating chairman Guo Ping mentioned at an annual summit of technology analysts that Huawei organizes at its headquarters in the southern Chinese city of Shenzhen.

Guo said that “Survival is the key for us now,” issuing an appeal to Huawei’s suppliers and customers worldwide to stand with it.

But the Huawei statement said the US decision “will have a serious impact on a wide number of global industries” by creating uncertainty in the chip sector and technology supply chains.

US officials said Huawei had been circumventing sanctions by purchasing chips and components that are produced around the world based on American technology.

Last year, Washington announced that it would blacklist Huawei from the US market and from buying crucial American components, though it has extended a series of reprieves to allow US businesses that work with Huawei time to adjust.

Wilbur Ross, Commerce Secretary, had said that even as Huawei seeks to develop its own components in response to US sanctions, “that effort is still dependent on US technologies.”

US officials accuse Huawei of stealing American trade secrets and say it could allow Beijing to spy on global telecoms traffic.

Huawei strenuously rejects the charges, saying the United States has never provided any proof of a security threat.

The sanctions against the company have been a key driver of heightened US-China trade tensions.

On Sunday, China’s Ministry of Commerce warned it would take unspecified “necessary measures” to protect Huawei.

A senior State Department official said the move would not necessarily deny Huawei access to these products but require a license allowing Washington to keep track of the technology.

Source: https://gadgets.ndtv.com/telecom/news/huawei-says-survival-at-stake-after-us-chip-restrictions-2230975

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