Business | Creative destruction

How America’s war on Huawei may boost Chinese technology

From September 15th the Chinese telecoms giant will no longer be able to buy vital semiconductors

HUAWEI IS ON the ropes. From midnight on September 14th the Chinese technology giant will be cut off from essential supplies of semiconductors. Without chips it cannot make the smartphones or mobile-network gear on which its business depends. America’s latest rules, finalised on August 17th, prohibit companies worldwide from selling chips to Huawei if they have been made with American chipmaking kit. American semiconductor companies, for which Huawei has been a lucrative customer, have implored their government to extend the deadline, as have their industry bodies. A full reprieve looks unlikely.

This article appeared in the Business section of the print edition under the headline “Creative destruction”

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