Main topic: President Joe Biden's executive order on limiting American investment in certain Chinese tech firms.
Key points:
1. The executive order aims to address national security concerns related to companies dealing with sensitive technologies like semiconductors, quantum computing, and artificial intelligence.
2. The order is narrowly targeted to bar funding of entities engaged in specific activities that pose acute national security risks.
3. This is not the first time the US has sought to limit the influence of Chinese tech firms, with previous restrictions on Huawei, supercomputing technology sales, and pressure on ByteDance to sell TikTok.
Huawei dominates the foldable smartphone market in China with over 50% market share, despite not having 5G connectivity, and the segment is experiencing strong year-over-year growth.
Chinese tech giant Huawei is reportedly building secret semiconductor-fabrication facilities in China to evade U.S. sanctions, according to the Semiconductor Industry Association, which claims that Huawei has acquired existing plants and is constructing three others using state funding.
Chinese smartphone company Huawei has released its latest model, the Mate 60 Pro, which features an advanced chip designed and manufactured in China, despite US sanctions intended to hinder the country's technological progress, showcasing China's ability to innovate without relying on US technology.
China has defied US-led export restrictions by producing a 5G smartphone, Huawei's Mate 60 Pro, using an advanced silicon chip made by Semiconductor Manufacturing International Corp (SMIC), indicating progress in China's efforts to build a domestic chip ecosystem.
China has reportedly ordered officials at central government agencies to not use Apple's iPhones and other foreign-branded devices for work or bring them into the office, potentially impacting foreign companies operating in China as tensions between the US and China escalate.
Huawei's latest smartphone featuring advanced chips from China's domestic market poses a challenge to Intel and TSMC amid US efforts to restrict China's access to chip technology.
China's Huawei Technologies' development of an advanced chip for its latest smartphone demonstrates the country's resilience in the face of U.S. sanctions, but the costly efforts may lead to tighter restrictions from Washington, according to analysts.
The US government is seeking more information about the Huawei Mate 60 Pro smartphone, particularly its advanced chip, to determine if American restrictions on semiconductor exports were bypassed.
The chair of the House of Representatives' committee on China has called for the U.S. Commerce Department to halt all technology exports to Huawei and China's top semiconductor firm, SMIC, after the discovery of new chips in Huawei phones that may violate trade restrictions.
The recent unveiling of Huawei's Mate 60 Pro smartphone, powered by the Kirin 9000s chip, has sparked debates about its significance in the US-China technology cold war.
Chinese government restrictions on the use of iPhones at work have caused Apple's stock to decline, but investors see this as a buying opportunity due to China's previous restrictions on foreign products and Apple's strong prospects, attractive valuation, and upcoming product releases.
Fears over Beijing's ban on iPhones for government officials in China may be exaggerated, as analysts predict the impact will be minimal and Apple's support of millions of jobs in the country could deter further restrictions.
Apple's iPhone sales in China surpassed the United States in the second quarter of 2023, becoming the largest market for iPhone shipments, while Qualcomm announced that it will continue to supply Apple with 5G modems through 2026.
Renewed curbs on the use of Apple devices by government officials in China have raised concerns among Apple's investors and heightened geopolitical tensions between the US and China.
Apple is facing growing troubles in China, with tensions rising between the US and China, the ban on government employees using iPhones, and China's economic woes, prompting the tech giant to shift its focus to India as a potential market for growth.
Ten Republican lawmakers are urging the Commerce Department to impose stricter sanctions on Huawei and Semiconductor Manufacturing International Corp. (SMIC), after the companies showcased a domestically manufactured advanced smartphone chip that allegedly violated U.S. export controls, prompting concerns about the effectiveness of current export controls in preventing U.S. technology from reaching China.
The U.S. government is investigating how Huawei and SMIC managed to create 7nm Kirin 9000S 5G chipsets in violation of American sanctions, while Foxconn workers assembling the Huawei Mate 60 Pro in China are paid 19.2% more than those assembling the iPhone.
Huawei's chip design unit, HiSilicon, is shipping new Chinese-made chips for surveillance cameras, indicating that the company is finding ways around the US export controls and reclaiming market share in the sector.
Despite conflicting claims, the U.S. Commerce Secretary has stated that there is no evidence that Huawei can manufacture smartphones with advanced semiconductors at scale.
Huawei may launch a mid-range 5G phone as early as October, indicating that the company has overcome U.S. sanctions.
The release of Apple's iPhone 15 in China is being closely watched, with strong pre-orders indicating demand despite concerns about government curbs and competition from Huawei.
