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Friday, April 19, 2024

US ban on Chinese tech firms will only ‘hurt global value chain': Experts - Pakistan Today

Last updated Saturday, November 26, 2022 11:05 ET

BEIJING: The US Federal Communications Commission (FCC) on Friday banned five Chinese firms from selling communications equipment in the US, citing the catch-all excuse of “national security,” a move Chinese experts warned will only hurt the global value chain and will definitely backfire.
The FCC “adopted new rules prohibiting communications equipment deemed to pose an unacceptable risk to national security from being authorized for importation or sale in the US,” read a statement released on its website.
Chinese leading technology firms Huawei, ZTE, Hytera Communications, Hikvision Digital Technology, and Dahua Technology were added to the list.
The US has been stepping up efforts to crack down on Chinese telecom operators over recent years. From ZTE, Huawei to China Telecom (Americas) Corp and China Mobile International USA Inc. “Nearly all Chinese telecom giants have been viciously targeted by the US,” Ma Jihua, a veteran telecom observer, told the Global Times on Saturday.
Yet, the impact of the latest ban on Chinese firms is limited, as many of them have reduced business operations in the US due to Washington’s hostile attitude, Ma said.
The so-called national security threat is groundless. It has become increasingly clear that the US’ crackdown has seen diminishing marginal effect; while Chinese technology firms can not only survive, but will keep grow robustly, experts said.
Huawei reported a 113.7-billion-yuan ($15.9 billion) net profit in 2021, surging 75.9...



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