America is determined to sink Huawei
A new escalation in the tech conflict illustrates the limits of American power
IF AT FIRST you don’t succeed, try again. A year ago America forbade its high-tech companies from selling to Huawei, a Chinese maker of smartphones and mobile-network infrastructure. American officials worry that Huawei-powered phone networks could aid Chinese spying (something the firm denies), and about China’s growing technological prowess more generally. But the embargo turned out to be puny. Loopholes allowed American firms to carry on supplying Huawei from overseas factories. The Chinese firm’s revenues rose by 19% in 2019, to $123bn. Thanks to its efforts to stockpile parts, its purchases from American suppliers rose by 70%, to $19bn.
This article appeared in the Leaders section of the print edition under the headline “Chip wars”
From the May 23rd 2020 edition
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