China Threatens ‘Legal’ Action on Firms Complying With US Guidance on Huawei Chips
Beijing this week threatened to penalize any person or company that complies with new export control guidance from the Bureau of Industry and Security about advanced Huawei chips, saying the guidance constitutes “discriminatory restrictive measures against Chinese companies.”
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China said anyone that “implements or assists in the implementation of the US measures will be suspected of violating” the country’s anti-foreign sanctions law, which gives Beijing broad discretion to penalize companies for obeying U.S. and other countries' restrictions against China (see 2309270039). Those people or companies “must bear corresponding legal responsibilities,” a Chinese Ministry of Commerce spokesperson said May 21, according to an unofficial translation.
A BIS spokesperson didn’t respond to a request for comment.
The ministry’s comments came days after BIS declared that using certain Huawei Ascend chips “anywhere in the world” would be a violation of U.S. export controls (see 2505130018). The agency later removed that language from its May 13 press release (see 2505190030), but it maintains guidance that lists several Huawei chips that are “subject to the presumption” that they’re restricted by General Prohibition 10, which places restrictions on exporters and others if they have knowledge that a violation of the Export Administration Regulations has occurred, is about to occur or is intended to occur.
“BIS is warning that, pursuant to GP10, the use of such [Chinese] advanced computing [integrated circuits],” including from Huawei, “risks violating U.S. export controls and may subject companies to BIS enforcement action,” BIS said in the guidance.
China said the guidance attempts to “ban China's advanced computing chips, including specific Huawei Ascend chips, worldwide on the grounds of so-called presumption of violation of US export controls.” A ministry spokesperson said the measures are “typical unilateral bullying and protectionist practices” and “seriously undermine” the global semiconductor industry and supply chain.
“China believes that the United States is abusing export controls to contain and suppress China, which violates international law and basic norms governing international relations, seriously damages the legitimate rights and interests of Chinese companies, and endangers China's development interests,” the spokesperson said. The person added that Beijing is “closely following the implementation of the US measures and will take resolute measures to safeguard its legitimate rights and interests.”