On August 17, the United States restricted non-American semiconductor suppliers selling chips without permissions to Chinese Tech Giant, Huawei. This further tightened the tension between the U.S. and China. Ultimately, it is another step the U.S. took to win the Technology War against China.

Since the beginning of the Trade War in 2018, the Trump Administration started to pay close attention to Huawei due to its large international impact. In October 2019, President Donald Trump accused Huawei of spying on U.S. and spoke on their tie with Chinese Communist Party.

“It’s a national security concern, Huawei is a big concern of our military, our intelligence agencies, and we are not doing business with Huawei.”, said President Donald Trump.

Huawei denied Trump’s Accusations and went on to accuse Washington of using U.S. national cyber-security as an excuse to stop competition within the US technology industry.

Regarding the company’s relations with the union of the ruling party in China, there have been disputes for more than a decade on the topic. This means Huawei serves as a catalyst in the process of escalating the trade war between China and the United States. In addition to selling phones, Huawei is also a major supplier of telecommunications equipment for cellular and broadband networks. Today it finds that its ability to do business with American companies, citizens and allies is increasingly restricted under US sanctions.

The United States has cut off Huawei’s access to important advanced computer chips that use 5G networking, which has fatally impacted the company.

Richard Yu, the president of the Huawei consumer unit spoke on this topic, “Production of Kirin chips designed by Huawei’s own engineers will stop Sept. 15 because they are made by contractors that need U.S. manufacturing technology.”

The chip ban effectively delayed the smartphone production of Huawei and is putting Huawei at great danger in the technology competition, “This year may be the last generation of Huawei Kirin high-end chips.” Said Yu.

Due to the fact Huawei has overtime mastered 5G networking, China may surpass US in that particular field. Chinese officials Believe Trump’s Accusations are a pawn to Stop China from becoming the leader of technology.

“With the advancement of Chinese science and technology, China has seriously threatened the leading advantage of the United States in related industries. In the current information age, whoever has mastered the communication standard technology will be able to obtain the first opportunity for development in the next few decades.” stated Chinese Officials.

The future of Huawei is yet to be determined, and the Trump Administration’s ongoing involvement with the company leaves the solution up in the air.