US has been warned about the creation in China of a network of enterprises for the production of microchips associated with Huawei, banned in some countries.
The Washington-based NGO Semiconductor Industry Association, which specializes in supporting the U.S. semiconductor industry, has released a presentation. It says about the creation of a network of “secret” factories under the control of Huawei. Two factories have been bought and three are under construction. The project is supported by the Communist Party ― about $30 billion of state funding has been allocated since last year. The secrecy of enterprises is due to the fact that they hide the connection with Huawei: this should help to purchase equipment and spare parts to circumvent the sanctions imposed against the Chinese IT giant.
Bloomberg journalists drew attention to the report and asked the US authorities a question. The Bureau of Industry and Security of the Ministry of Commerce claims that two companies from the Huawei network have already been included in the sanctions lists. The help from the Chinese government confirms that the sanctions against Huawei are working, it has suffered commercial damage, officials say. Export control is constantly being reviewed by them.
What was previously known about the presence of the network is confirmed by the Semiconductor Industry Association itself. The release of the presentation may indicate the growing concern of the industry ― American exporters are warned that their products may violate the rules, even if they formally do not go to Huawei. This is happening during the approval of new government restrictions on the supply of high-tech products to China, including chips. The White House promised to discuss the rules with business.
