On Sunday, Commerce Secretary Gina Raimondo downplayed the significance of Huawei Technologies of a new microchip, saying the US maintains a significant lead over China in technology.
The comments made on CBS News' "60 Minutes" are consistent with the Commerce Secretary's view that the Biden administration's restrictions on sales to China are working. This is despite the presence of an advanced chip made in China that was used in a Huawei cellphone last year.
"It's significantly behind what we have in the United States. We have the most advanced semiconductors in the world, unlike China. We have surpassed China in this area," Raimondo said in the interview broadcast Sunday night in the US.
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While on the US blacklist, Huawei managed to launch the impressive smartphone , equipped with a chip that supports 5G technology. This is a significant achievement, especially given the conditions created by strict US export controls in late 2022. The phone's launch coincided with Raimondo's visit to China, giving the event special significance.
Before departure, it was revealed that Raimondo's email had been compromised by hackers with connections to China.
"I have their full attention," he said, stressing that the US will continue to take measures to ensure national security and protect its business activities.
According to a statement from a senior Commerce Department official, Huawei's partner, chipmaker SMIC, allegedly violated US law by supplying the Chinese phone maker with an advanced chip .
Following the launch of the Mate 60 Pro, the US has intensified its restrictive policies, implementing stricter restrictions on sales of advanced semiconductors to China.
Chinese officials have repeatedly denounced policies that require companies to obtain licenses to sell products with advanced U.S.-designed chips to countries considered rivals.
Many American chip companies, which rely heavily on China for their business, have also expressed concern about the risk of losing access to the Chinese market.
Gina Raimondo said that “there is interest in commercial exchange with China in a wide range of goods and services.” However, she stressed the need for caution in technologies that have the potential to impact national security.
The global chip race intensified after Moscow's invasion of Ukraine in 2022, prompting the US and allies like the Netherlands and Japan to tighten controls on advanced technology. CNBC previously reported that Russia has been acquiring advanced Western technology through intermediary countries like China.
“It is undeniable that our export restrictions have significantly affected Russia’s ability to wage war, making the process more complicated,” Raimondo said. However, she acknowledged that Russia has managed to identify some alternative sources for chips.
The Commerce Department has overseen the implementation of the Chips Act, managing nearly $53 billion of Biden administration funds . The goal is to boost the domestic U.S. semiconductor industry and counter competitors like China.
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In recent weeks, billions in grants and loans have been poured into leading chipmakers, including Taiwan Semiconductor Manufacturing Co., Samsung Electronics and Micron Technology, to boost their manufacturing capacity in the United States.
Gina Raimondo recently told CNBC that all grant funds allocated through the CHIPS Act will have been distributed by the end of the year.
Source: cnbc.com
