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Huawei logo 2021

a network of hidden factories to escape US sanctions?

  • The Bloomberg agency claims that Huawei has started production of chips in China
  • It would benefit from local funding of up to $30 billion
  • This would allow him to use American technologies to which he theoretically has no right

Since 2019, Huawei has been placed on a list drawn up by the US government that prevents it from doing business with Uncle Sam companies in many sectors. One of the most harmful are semiconductor manufacturing technologies. According to the information of Bloomberg, which incorporates those of the world’s association of electronic chip manufacturers, the Chinese company has found a clever way to get around these sanctions.

Huawei in the crosshairs of the American authorities

Concretely, it has had a clandestine semiconductor production network on Chinese territory, and in particular in Shenzen, since last year, with a colossal public funding of 30 billion dollars. In detail, it acquired two existing plants and built three more.

The association claims that Huawei never discloses its involvement in these projects, so it could circumvent the restrictions and source American materials for semiconductor production. Something she wasn’t officially going to be able to do.

When questioned by our colleagues, the US administration says it is following this dossier with the utmost attention. He specified that if such cases were confirmed, he would not hesitate to take the necessary measures.

However, our colleagues point out that China is investing astronomical sums in the electronic chip industry. 23 manufacturing plants are under construction with a projected investment of $100 billion by 2030. If forecasts are correct, China would have more than half of the world’s microchip manufacturing capacity that year.

As for Huawei, if the information provided were true, at 30 billion dollars, this sum would be almost equal to the investments planned by the United States in this sector, but the money will be distributed among several companies and not just one. .

Recall that it was under the leadership of Donald Trump that significant sanctions were adopted against China in 2019. With the arrival of Joe Biden in the White House, Beijing hoped for an improvement in terms of sanctions.

However, unlike many other subjects, the democrat maintains the line of his predecessor. Thus, restrictions against Huawei generally remained in place, preventing the Chinese tech giant from pre-installing Google apps and services on its devices or buying American 5G chips.


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