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U.S. Delivers Another Blow to Huawei With New Tech Restrictions U.S. Delivers Another Blow to Huawei With New Tech Restrictions
(about 20 hours later)
WASHINGTON — The Trump administration issued a new rule Friday that will bar Huawei and its suppliers from using American technology and software, a significant escalation in the White House’s battle with the Chinese telecom giant and one that is likely to inflame tensions with Beijing.WASHINGTON — The Trump administration issued a new rule Friday that will bar Huawei and its suppliers from using American technology and software, a significant escalation in the White House’s battle with the Chinese telecom giant and one that is likely to inflame tensions with Beijing.
The rule change, which is slated to go into effect in September, will block companies around the world from using American-made machinery and software to design or produce chips for Huawei or its entities. Companies can apply for a license to continue supplying those products, but the administration said the presumption would be to deny those requests.The rule change, which is slated to go into effect in September, will block companies around the world from using American-made machinery and software to design or produce chips for Huawei or its entities. Companies can apply for a license to continue supplying those products, but the administration said the presumption would be to deny those requests.
John Neuffer, the president of the Semiconductor Industry Association, which represents chip makers, said his group was concerned that the rule would “create uncertainty and disruption for the global semiconductor supply chain.” He added, however, that it appeared less damaging than broader approaches the administration had previously considered.John Neuffer, the president of the Semiconductor Industry Association, which represents chip makers, said his group was concerned that the rule would “create uncertainty and disruption for the global semiconductor supply chain.” He added, however, that it appeared less damaging than broader approaches the administration had previously considered.
The move appears aimed at inflicting further damage on Huawei, which continues to rely on American-made machinery and software designs to make the chips for its smartphones and tablets, as do the companies that supply it. The Trump administration has singled out Huawei as a threat to national security, saying its gear should not be trusted because it is beholden to the Chinese government, an accusation the company has denied.The move appears aimed at inflicting further damage on Huawei, which continues to rely on American-made machinery and software designs to make the chips for its smartphones and tablets, as do the companies that supply it. The Trump administration has singled out Huawei as a threat to national security, saying its gear should not be trusted because it is beholden to the Chinese government, an accusation the company has denied.
The measure is the latest of several restrictions taken against Huawei in the last year. The administration added Huawei to an “entity list” last May, barring exports of American products to the company and 114 of its affiliates unless suppliers had first obtained a license.The measure is the latest of several restrictions taken against Huawei in the last year. The administration added Huawei to an “entity list” last May, barring exports of American products to the company and 114 of its affiliates unless suppliers had first obtained a license.
After that rule was imposed, Huawei took steps to reduce its reliance on American chip manufacturers like Qualcomm and ramp up its in-house production through a chip unit, HiSilicon.After that rule was imposed, Huawei took steps to reduce its reliance on American chip manufacturers like Qualcomm and ramp up its in-house production through a chip unit, HiSilicon.
But HiSilicon still relies on outside manufacturers, including the Shanghai-based Semiconductor Manufacturing International Corporation, or S.M.I.C., and the Taiwan Semiconductor Manufacturing Company, or T.S.M.C., to mass-produce chips to its specifications. Many of those operations rely to some extent on technology that was developed and refined in the United States, where the semiconductor industry began.But HiSilicon still relies on outside manufacturers, including the Shanghai-based Semiconductor Manufacturing International Corporation, or S.M.I.C., and the Taiwan Semiconductor Manufacturing Company, or T.S.M.C., to mass-produce chips to its specifications. Many of those operations rely to some extent on technology that was developed and refined in the United States, where the semiconductor industry began.
In a statement on Friday, the Commerce Department said Huawei had tried to “undermine” its previous restrictions by using American software and technology to make its own semiconductors, and buying products from foreign foundries that used American equipment.In a statement on Friday, the Commerce Department said Huawei had tried to “undermine” its previous restrictions by using American software and technology to make its own semiconductors, and buying products from foreign foundries that used American equipment.
“There has been a very highly technical loophole through which Huawei has been able, in effect, to use U.S. technology with foreign fab producers,” Wilbur Ross, the commerce secretary, said in an interview Friday morning on Fox Business Network. He said the changes announced Friday were tailored moves “to try to correct that loophole and make sure that the American fab foundries are competing on an equal footing with the foreign ones.”“There has been a very highly technical loophole through which Huawei has been able, in effect, to use U.S. technology with foreign fab producers,” Wilbur Ross, the commerce secretary, said in an interview Friday morning on Fox Business Network. He said the changes announced Friday were tailored moves “to try to correct that loophole and make sure that the American fab foundries are competing on an equal footing with the foreign ones.”
The measure could weigh on major chip contract manufacturers that sell to Huawei, particularly S.M.I.C. and T.S.M.C., which rely heavily on American manufacturing tools. It may also clamp down on sales by makers of semiconductor equipment, like Applied Materials, KLA and Lam Research, as well as chip design software companies.The measure could weigh on major chip contract manufacturers that sell to Huawei, particularly S.M.I.C. and T.S.M.C., which rely heavily on American manufacturing tools. It may also clamp down on sales by makers of semiconductor equipment, like Applied Materials, KLA and Lam Research, as well as chip design software companies.
The move comes at a moment of heightened tensions between the United States and China. President Trump has blamed China for not doing enough to stop the spread of the coronavirus and has suggested that the United States may punish the Chinese government. He has also begun threatening to scrap the trade deal the two countries signed in January.The move comes at a moment of heightened tensions between the United States and China. President Trump has blamed China for not doing enough to stop the spread of the coronavirus and has suggested that the United States may punish the Chinese government. He has also begun threatening to scrap the trade deal the two countries signed in January.
“This came from China,” Mr. Trump said at a White House event to discuss a vaccine on Friday. “It should have been stopped in China before it got out to the world.”“This came from China,” Mr. Trump said at a White House event to discuss a vaccine on Friday. “It should have been stopped in China before it got out to the world.”
The administration’s new measure against Huawei, one of China’s biggest technology companies and a crown jewel of Chinese innovation, could prompt a backlash against American technology companies that depend on sales to China, such as Qualcomm and Apple.The administration’s new measure against Huawei, one of China’s biggest technology companies and a crown jewel of Chinese innovation, could prompt a backlash against American technology companies that depend on sales to China, such as Qualcomm and Apple.
On Friday evening, the English edition of the Chinese state-controlled newspaper Global Times cited an unnamed source who said the Chinese government was ready to retaliate.On Friday evening, the English edition of the Chinese state-controlled newspaper Global Times cited an unnamed source who said the Chinese government was ready to retaliate.
“Based on what I know, if the U.S. further blocks key technology supply to Huawei, China will activate the ‘unreliable entity list,’ restrict or investigate U.S. companies such as Qualcomm, Cisco and Apple, and suspend the purchase of Boeing airplanes,” Hu Xijin, the editor in chief of the Global Times, wrote on Twitter.
Updated June 22, 2020Updated June 22, 2020
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
“Based on what I know, if the U.S. further blocks key technology supply to Huawei, China will activate the ‘unreliable entity list,’ restrict or investigate U.S. companies such as Qualcomm, Cisco and Apple, and suspend the purchase of Boeing airplanes,” Hu Xijin, the editor in chief of the Global Times, wrote on Twitter.
In a call with reporters on Friday, a State Department official enumerated the United States’ broad concerns about Huawei, including that it had violated American sanctions on Iran and helped the Chinese government construct a surveillance network within China and abroad. Huawei is key to the Chinese government’s broad strategy of “civil military fusion” that supports the Communist Party’s global ambitions, the official said.In a call with reporters on Friday, a State Department official enumerated the United States’ broad concerns about Huawei, including that it had violated American sanctions on Iran and helped the Chinese government construct a surveillance network within China and abroad. Huawei is key to the Chinese government’s broad strategy of “civil military fusion” that supports the Communist Party’s global ambitions, the official said.
Senator Ben Sasse, a Nebraska Republican, called the rule change “long overdue.”Senator Ben Sasse, a Nebraska Republican, called the rule change “long overdue.”
“The United States needs to strangle Huawei,” he said in a statement. “Modern wars are fought with semiconductors, and we were letting Huawei use our American designs. This is pretty simple: Chip companies that depend on American technology can’t jump into bed with the Chinese Communist Party.”“The United States needs to strangle Huawei,” he said in a statement. “Modern wars are fought with semiconductors, and we were letting Huawei use our American designs. This is pretty simple: Chip companies that depend on American technology can’t jump into bed with the Chinese Communist Party.”
Huawei had no immediate comment.Huawei had no immediate comment.
On Thursday night, T.S.M.C. said it had agreed to build a $12 billion factory in Arizona, in response to the Trump administration’s growing concerns about the security of the global electronics supply chain. The twin announcements raised speculation that T.S.M.C. might have obtained some kind of assurance that at least a portion of its sales to Huawei would be exempted from the new ban. While the bulk of T.S.M.C.’s revenue is from American companies, HiSilicon accounted for 14 percent of its revenue in the first quarter and is the company’s fastest-growing client, said Paul Triolo, an industry analyst at Eurasia Group.On Thursday night, T.S.M.C. said it had agreed to build a $12 billion factory in Arizona, in response to the Trump administration’s growing concerns about the security of the global electronics supply chain. The twin announcements raised speculation that T.S.M.C. might have obtained some kind of assurance that at least a portion of its sales to Huawei would be exempted from the new ban. While the bulk of T.S.M.C.’s revenue is from American companies, HiSilicon accounted for 14 percent of its revenue in the first quarter and is the company’s fastest-growing client, said Paul Triolo, an industry analyst at Eurasia Group.
Keith Krach, the under secretary for economic growth, energy and the environment at the State Department, said Friday that T.S.M.C. had been given “no assurances” that it would be exempt from the measure. A Commerce Department official said the agency did not comment on individual license decisions.Keith Krach, the under secretary for economic growth, energy and the environment at the State Department, said Friday that T.S.M.C. had been given “no assurances” that it would be exempt from the measure. A Commerce Department official said the agency did not comment on individual license decisions.
A T.S.M.C. spokeswoman said the factory decision was based on its business needs, not part of any negotiation for eased trade sanctions.A T.S.M.C. spokeswoman said the factory decision was based on its business needs, not part of any negotiation for eased trade sanctions.
In a statement early Friday, Secretary of State Michael R. Pompeo said the deal would increase American economic independence from China and strengthen the U.S. relationship with Taiwan, a self-governing island claimed by Beijing.In a statement early Friday, Secretary of State Michael R. Pompeo said the deal would increase American economic independence from China and strengthen the U.S. relationship with Taiwan, a self-governing island claimed by Beijing.
Also on Friday morning, the Commerce Department extended for another 90 days a license that has allowed American companies to continue doing business with Huawei temporarily. It warned that this would be the final extension.Also on Friday morning, the Commerce Department extended for another 90 days a license that has allowed American companies to continue doing business with Huawei temporarily. It warned that this would be the final extension.
Paul Mozur and Raymond Zhong contributed reporting.Paul Mozur and Raymond Zhong contributed reporting.