US Trade Minister Says Huawei Chips Are Not As Great As American Chips

US Secretary of Commerce, Gina Raimondo, (photo: x @SecRaimondo)

JAKARTA - US Commerce Secretary Gina Raimondo, on Sunday 21 April, said that the chip that powers Huawei's Mate 60 Pro phones, a sanctioned Chinese company, is not as great as American chips. This shows that the restrictions on US shipments to the telecommunications equipment giant are running effectively.

Huawei, which has been on the list of trade restrictions since 2019, shocked the US industry and government when it released a new phone powered by advanced chips last August. The Huawei Mate 60 Pro is considered a symbol of China's technological revival despite Washington's ongoing efforts to cripple its capacity in producing advanced semiconductors.

Raimondo, who was visiting China when the phone was released, was seen by many as an insult. However, in an interview with CBS News 60 Minutes, Raimondo denied this view.

"This shows me that export controls work because the chips are not as good as we have in the United States, the chips are a few years behind compared to what we have in the United States. We have the most advanced semiconductors in the world. China isn't," Raimondo said.

Washington has been involved in years of efforts to limit Beijing from making advanced semiconductor chips and tools needed to make them because of their concerns that it will be used to strengthen China's military capabilities.

Huawei, a symbol of the technology war, was added to the entity list in 2019 amid concerns that the company could spy on Americans, forcing US suppliers to look for licenses that are difficult to obtain to deliver.

However, its suppliers, including Intel, have received billions of dollars worth of licenses to continue selling to the company. Huawei's disclosure of their first AI-enhanced laptop and powered by Intel chips this month has sparked outrage among China's hardlines in the Republican Party.

When asked if he was tough enough on big business, Raimondo was firm. "I demand business accountability as much as anyone else," he told Lesley Stahl at 60 Minutes. When I told them they couldn't sell their semiconductors to China, they didn't like it, but I did, "he added.

Huawei phones also sparked a review by Joe Biden's administration to study the details behind the chip that powers it, the most advanced semiconductor ever produced by China. However, the details of the review are still small.