US green light to Huawei and SMIC suppliers despite the embargo on the sale of semiconductor components
Committee decision The foreign relations of the US House of Representatives to issue more than 100 billion dollars of export licenses to the suppliers of two Chinese companies clearly shows how difficult it is to cut the link between these two major economies of the world, and it is not possible to rely on legal orders, the commercial reality between the two countries. changed the
Issuance of this amount of permission, which angered American politicians in favor of embargoing the sale of semiconductor components to China, is a renewed emphasis on the need to make decisions based on economic logic. Without considering this logic, problems such as the lack of chips will be created in the long term, and its effects will affect American companies and the economy.
Marco Rubio, the Republican senator, told Reuters in this regard that Biden should explain to apply these exemptions. According to him, “This is just one more example of President Biden’s inattention to the serious economic and security threats posed by the Chinese Communist Party.”
Gary Ng, chief Asia Pacific economist at Natixis Investment Bank In this regard, he says: “US temporary licenses reflect a balance between long-term geopolitical prospects and short-term chip shortages.” He further added that the pressure of chipset shortages, especially in more advanced nodes and smaller wafers, has also affected the domestic and international sales of American companies.
As you know, the Trump administration, companies
SMIC, the world’s fourth-largest semiconductor maker, is opening new chip factories in Beijing and Shenzhen. In this regard, Zhao Haijun, one of the managing directors of SMIC, recently warned about the possible delay in the approval of export licenses from the United States and its impact on the suppliers of the equipment needed by the company. However, despite these concerns, as reported by Reuters, more than 9 out of 10 license requests to meet the SMIC requirement were approved, while this rate was 69 percent for Huawei.
Of course, most of the licenses granted do not allow the supply of sensitive products; Among the 113 export licenses granted to Huawei during this time period, 80 of them were related to non-sensitive goods, the sale of which required approval simply because of the presence of this company in the black list. This amount for SMIC was about 121 out of 188 licenses.
In August, the Reuters news agency also reported the green light of the Biden administration to Huawei to purchase American semiconductors for use in the Chinese company’s auto parts business. Was. Although the Ministry of Commerce of this country did not reject the Reuters report, it did not accept the fact that it has reduced the trade restrictions of the Chinese company.
According to analysts, one of the reasons for the approval of the export license to Huawei and SMIC It could be that American suppliers are not yet ready to give up on China as a hot market for American technology. Arisa Liu, a senior researcher at the Taiwan Economic Research Institute, believes that “China is still the largest semiconductor market, accounting for more than 30 percent of global demand. [Therefore] the US semiconductor industry will not be willing to give up this market because of the tensions between the two countries and will try to find ways to do business with China, as the largest center for the production of electric vehicles.”
On the other hand, export licenses will help Huawei to overcome existing problems and obstacles. Because this company after The beginning of US sanctions by cutting off access to Google Mobile Services and Then Advanced Chips The fifth generation has faced. Will Wong, one of the analysts of the IDC market research institute in Singapore, referring to the position of the Chinese super company, says: “These licenses are to maintain the brand Huawei will be vital in the market and even potentially give it time to revive.”
However, according to Ng, the States Muttahida could still hold off on approving its export licenses after concerns about chip shortages eased. On the other hand, according to Wang, despite the importance of the Chinese market, it is expected that geopolitical issues will remain the priority of the US government’s decisions and the government’s policy will focus more on more advanced technologies such as 5G. From his point of view, “the Biden administration has a more targeted approach and tries to balance national security and the economy”. will be released from previous restrictions; However, this prediction has not been realized in practice. According to a former official at Trump’s Commerce Department, “this short licensing period will not open a transparent window for the licensing process for Huawei and SMIC [and] [the release of these documents] appears to be aimed solely at misleading the public and creating headlines.” has taken.”