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Gina Raimondo Downplays Huawei’s Latest Microchip Breakthrough

Last weekend, US Commerce Secretary Gina Raimondo, while talking to reporters, downplayed the importance of the latest achievements of the Chinese company Huawei Technologies in the microchip area, stating in an appropriate context that Washington is significantly ahead of Beijing in the mentioned segment of the technology sector.

Gina Raimondo Downplays Huawei's Latest Microchip Breakthrough

The specified comments are a kind of statement that the restrictive measures of the administration of the President of the United States Joe Biden are effective in terms of the result in the form of curbing the technological potential of the Asian country. In this case, Washington’s decision to ban the supply of advanced chips to China is implied. Also, the comments of the Commerce Secretary can be interpreted as a declaration of the fact that the improved microcircuit in the Huawei smartphone, which debuted last year, does not negate the effectiveness of the specified measures taken by the administration of the President of the United States. It is worth noting that the mentioned chip is a Chinese development. After the debut of a smartphone with this microcircuit, the opinion began to circulate in the space of public discourse that the system of restrictions imposed by Washington on Beijing is not effective.

Gina Raimondo argues that Huawei’s achievements in the chip area are years behind the results that the United States has already achieved at the moment. In this context, she also stated that US semiconductors are the most advanced in the world. Moreover, it was additionally noted that Washington has overtaken Beijing in the area of innovation.

In August 2023, Huawei, which is blacklisted by the US, presented the Mate 60 Pro smartphone with a chip sported 5G technology. The mentioned microcircuit has become something of a sensation since a belief has been formed in the expert and political environment that the relevant technological capabilities are unavailable to Beijing due to export control measures introduced by Washington at the end of 2022. After the debut of the Mate 60 Pro in the United States, some lawmakers said that restrictions on China were insufficient. In this case, it implies measures to counter Beijing’s technological potential.

A certain symbolic aspect of the Mate 60 Pro’s debut is that it took place during Gina Raimondo’s visit to China. Moreover, before this trip, it became known that some hackers associated with Beijing had gained access to the e-mail of the Commerce Secretary. Against this background, Gina Raimondo made a statement that Washington will continue to take measures aimed at ensuring the protection of US national security and business.

A senior representative of the Commerce Department stated in a comment to the media that Huawei’s chip manufacturing partner SMIC potentially violated United States law by providing the smartphone manufacturer with an improved chip.

After the debut of the Mate 60 Pro, Washington tightened restrictions on the sale of advanced semiconductor technologies to China. Officials of the Asian country have repeatedly condemned these measures by the United States. Washington’s current policy in the mentioned environment stipulates that every company must obtain a license to be eligible to sell products with advanced chip technologies designed in the United States to countries that the American government identifies as opponents.

It is worth noting that many manufacturers of microcircuits, which are based in the United States and at the same time largely depend on China, also expressed concern about Washington’s restrictive measures against Beijing.

Gina Raimondo says that the US wants to trade with the Asian country for the vast majority of goods and services, but noted that the corresponding position does not apply to technologies that affect the national security system.

The Commerce Department oversaw the Joe Biden administration’s allocation of funding for the implementation of the Chips and Science Act worth almost $53 billion. This law is intended to develop the semiconductor industry in the United States and undercut competitors in the relevant area, the most important of which will be China.

In recent weeks, Washington has awarded multibillion-dollar grants and loans to chip makers like Taiwan Semiconductor Manufacturing Co., Samsung Electronics, and Micron Technology. These funds will be spent on the development of semiconductor manufacturing in the United States. This month, Gina Raimondo informed the media that all grants provided by the Chips and Science Act will be sent out by the end of 2024.

As we have reported earlier, Huawei Releases New Phone Lineup.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.