Former South Carolina Governor and U.S. ambassador to the U.N. Nikki Haley offered an opinion and prediction in response to the Trump administration taking action to hurt China’s Huawei Technologies as part of the U.S. response to the communist country’s role in the economically devastating coronavirus pandemic as well as threats posed by the expansion of China’s technology company.
On Friday, the U.S. Commerce Department issued a new rule requiring that foreign semiconductor manufacturers obtain licenses from the U.S. to sell products containing U.S. software and technology to Huawei. The new rule vastly strengthens the authority and ability of the U.S. to hinder the expansion of the Chinese-based communications technology company.
In response to a Wall Street Journal report on the Trump administration crackdown on China’s Huawei, Haley, who has been hammering China for weeks over its role in the COVID-19 crisis, tweeted, “China will lose their bucket over this move. It is hands down the right move for us in terms of national security.”
— Nikki Haley (@NikkiHaley) May 15, 2020
Haley’s comment on national security is a reference to the administration’s repeated warnings about the threat posed by China’s attempt to dominate the 5G market.
As The Daily Wire reported, U.S. Attorney General William Barr warned in a speech earlier this year that Huawei poses one of the greatest threats to U.S. national security.
“From a national security standpoint, if the Industrial Internet becomes dependent on Chinese technology, China would have the ability to shut countries off from technology and equipment upon which their consumers and industry depend,” said the attorney general. “The power the United States has today to use economic sanctions would pale by comparison to the unprecedented economic leverage we would be surrendering into the hands of China.”
“Within the next five years, 5G global territory and application dominance will be determined,” said Barr. “The question is whether, within this window, the United States and our allies can mount sufficient competition to Huawei to retain and capture enough market share to sustain the kind of long-term and robust competitive position necessary to avoid surrendering dominance to the Chinese.”
The Trump administration’s new rule requiring licenses for foreign manufacturers to ship products to Huawei has already resulted in negative fallout for the Chinese company. As reported by Reuters Monday, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest manufacturer of advanced microchips, has announced that it has stopped new orders from Huawei in response to the administration’s new rule.
China’s communist government has responded by vowing to take “all necessary measures” to respond to the restrictions and has condemned the new rule as an abuse of power. “The U.S. uses state power, under the so-called excuse of national security, and abuses export control measures to continuously oppress and contain specific enterprises of other countries,” said the regime.
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