In a new turn of events, the US and Huawei tussle gets fresh attention as more firms are on target. At this moment, four more Chinese firms are under the US government’s radar and might face a ban. This will be a result of the firm’s interactions with Huawei, which is currently under sanctions from the US government, limiting its chip access.
By adding these firms to the US Entity List, the government will prevent them from doing business with other US firms. For those firms that might want to perform business with these Chinese firms despite the sanctions, they might require a permit to do so. This permission will come from the US government, and it’ll permit such business activities under very strict terms.
The firms that might face this ban from the US government are Qingdao Sien, SwaySure, Shenzhen Pensun Technology, and ChangXin Memory Technologies (CXMT). Some sources familiar with this matter say that some more Chinese firms will be added to the list as well. These other firms are possibly two, and they might also have some business affiliations with Huawei.
Most of these firms deal in chips and other components necessary for the production of smart devices. For example, ChangXin Memory Technologies (CXMT) is China’s top memory chipmaker and will be a useful tool for the expansion of Huawei’s business. By placing a sanction on this firm, the US government might be looking to further strain Huawei’s access to the tools it needs for its manufacturing process.
This US and Huawei tussle has been going on for years now, with no possible solution from either side of the conflict. Huawei, however, seems to be making a comeback in the Chinese smartphone market despite all the sanctions in place. The result of adding these new firms to the US Entity List is one that we’ll closely watch.