The United States has recently taken a step to reduce China’s dominance in the tech industry by revoking certain licenses that allow the sale of chips to Huawei, a Shenzhen-based company. While the specific licenses that have been revoked were not detailed, the decision was made to align with the US’s efforts to protect its national security interests in the face of evolving digital threats.
Huawei has shown resilience despite strict trade regulations and has seen a significant 70% year-on-year increase in shipments in mainland China. This growth has solidified its position in the Chinese market, where it now accounts for 17% of total shipments, surpassing competitors like OPPO, HONOR, vivo, and Apple.
The US government’s recent actions are occurring in the context of escalating tensions between the two nations. President Biden recently signed legislation that could potentially lead to a ban on TikTok in the US unless it separates from its Chinese parent company. The intertwining of economic and geopolitical interests has become increasingly evident in recent years, with both sides having time to adapt to new restrictions, which in many cases have been ineffective.
Overall, the US’s crackdown on Chinese tech companies reflects a broader trend of heightened scrutiny and regulation in the industry. As
