Huawei. Biden administration to tighten restrictions on China

Huawei USA Biden

The degradation of relations between the United States of America and China resulted, for example, in the blockade imposed on Huawei during the Trump administration and the subsequent degradation of its position in the smartphone market. Now, Biden promises to tighten restrictions on technology exports to China in order to defend US economic interests.

More recently, Xiaomi has also been accused of being a “military company of Communist China”, a status that would prevent it from negotiating with any American company, if it were effectively classified as such. The brand contested this accusation and, at least for now, there are no sanctions or restrictions on free trade with US companies.

Biden to tighten restrictions on technology exports to China

Huawei USA Biden

According to the Reuters agency, the new Biden administration, which was expected to be more lenient towards China, effectively takes a diametrically opposite tone. The new executive will look for “new specific restrictions” to be applied to exports of technology classified as sensitive to China.

Biden also calls on the US allies to replicate the new constraints on what could be exported to China. The statements by the new president of the American nation were made last Wednesday.

Thus, the firm tone of defense of the economic interests of the nation led by him was defined, even before the first telephone call with Xi Jinping, the leader of the Chinese Communist Party and responsible for the destiny of this world power.

The United States of America will not raise any tariffs imposed by the Trump administration until it has completed a “careful review and consultation process, also involving allies of the American nation.

This information was provided to Reuters by an official White House source.

Biden's criticism of Trump's policies

President Joe Biden said he spoke to his Chinese counterpart Xi Jinping for two hours on Wednesday night and warned senators about China: ‘If we don't get moving, they are going to eat our lunch'

– Reuters (@Reuters) February 12, 2021

Contrary to expectations, Biden's biggest criticism of Trump's strategy lies not in politics or blocking itself, but in the fact that his predecessor acted alone. For the new president, the fight should have involved the US allies and not insist on contradicting the most loyal partners in the American nation.

“The President (Biden) ‘s biggest criticism of the Trump strategy was not because he was tough on China, but because he did it in isolation, while also fighting our allies,” statements from the White House from Reuters.

The same source advances that to date there are no decisions taken to raise tariffs and that, in some areas, the strategy will be to continue and maintain Trump's policies.

Biden will use US allies to face China

“One of the priorities is to ensure that we do not provide highly sensitive technology that can help China advance its military capabilities. We will be paying particular attention to that.“says the Reuters source.

Deepening the issue, new sanctions were promised to block the arrival of important technology in China. A wide range of know-how and equipment that could help China evolve its army, or with possible warlike applications.

Another of the new executive's priorities is to promote the technological sector, with public investments in the technology sector, something crucial for the economic growth of the United States of America.

Wanting to leverage sectors such as biotechnology, artificial intelligence, chip and semiconductor production, among other sectors of the technological market, the USA thus takes a protectionist stance in the face of China's growth.

More recently, in the first telephone call with the Chinese leader, Biden stressed fundamental concerns about coercive and unfair practices for the free market. He also pointed the finger at human rights abuses, citing the example of Hong Kong and the strong social repression applied there.

Biden also signaled the restrictions and sanctions applied by China to the neighboring country, Taiwan, a small oasis of technology off the Chinese coast, beyond its control.

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