Home ICT Huawei crisis ‘warning bells’ for China’s high-tech supply chain

Huawei crisis ‘warning bells’ for China’s high-tech supply chain

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In the areas neighboring Huawei’s research and development base in Songshanhu of Dongguan, South China’s Guangdong Province, it was not hard to find a range of high-tech companies thriving on booming digital services amid COVID-19. But for some industry representatives in the high-tech sector, it’s hard to turn a blind eye to what Huawei has been experiencing in recent days amid a heightened US-China tech war. 
“It’s never been more urgent for us to make breakthroughs in core technologies,” a supplier of Huawei, located miles away from Huawei’s R&D base and producing components for telecom equipment like base station and fiber-optic network, told the Global Times on Wednesday. 
Wednesday was also the second day of the latest US ban to cut off chip supply to Huawei, which apparently became an unavoidable topic among engineers, technicians and employees over the lunch break or coffee time in industrial parks in Dongguan, home to hundreds of factories making various types of products ranging from raw materials to components for electronic gadgets. 
At the factory supplying key components for Huawei for building 5G base stations and fiber-optic networks, workers wearing dust-proof suits focused on delicate work with the help of self-developed machines. “90 percent of our technologies are homegrown, and for the remaining 10 percent we need to depend on foreign firms, like US tech firm Intel,” a senior manager of this factory who preferred not to be identified told the Global Times on Wednesday. 
He also did not want to disclose the identity of the factory as it also provides some highly sensitive materials for major aerospace and key infrastructures. 
“The whole industry now is working around the clock to break the US blockage. This sense of urgency will surely help speed up progress,” he said. 
Chinese leaders, officials and top Chinese science and technology institutes have intensively called on making technological breakthroughs on a series of core technologies in recent days as more industry representatives see the Huawei crisis “a warning shot” that fully exposed the vulnerability of China’s high-tech growth.
Bai Chunli, president of the Chinese Academy of Sciences, also suggested on Wednesday to turn technologies mentioned in US Entity List into China’s future scientific research layout, for example, development of key raw materials and mask aligner for making chipset. 

In the areas neighboring Huawei’s research and development base in Songshanhu of Dongguan, South China’s Guangdong Province, it was not hard to find a range of high-tech companies thriving on booming digital services amid COVID-19. But for some industry representatives in the high-tech sector, it’s hard to turn a blind eye to what Huawei has been experiencing in recent days amid a heightened US-China tech war. 

“It’s never been more urgent for us to make breakthroughs in core technologies,” a supplier of Huawei, located miles away from Huawei’s R&D base and producing components for telecom equipment like base station and fiber-optic network, told the Global Times on Wednesday. 
Wednesday was also the second day of the latest US ban to cut off chip supply to Huawei, which apparently became an unavoidable topic among engineers, technicians and employees over the lunch break or coffee time in industrial parks in Dongguan, home to hundreds of factories making various types of products ranging from raw materials to components for electronic gadgets. 
At the factory supplying key components for Huawei for building 5G base stations and fiber-optic networks, workers wearing dust-proof suits focused on delicate work with the help of self-developed machines. “90 percent of our technologies are homegrown, and for the remaining 10 percent we need to depend on foreign firms, like US tech firm Intel,” a senior manager of this factory who preferred not to be identified told the Global Times on Wednesday. 
He also did not want to disclose the identity of the factory as it also provides some highly sensitive materials for major aerospace and key infrastructures. 
“The whole industry now is working around the clock to break the US blockage. This sense of urgency will surely help speed up progress,” he said. 
Chinese leaders, officials and top Chinese science and technology institutes have intensively called on making technological breakthroughs on a series of core technologies in recent days as more industry representatives see the Huawei crisis “a warning shot” that fully exposed the vulnerability of China’s high-tech growth.
Bai Chunli, president of the Chinese Academy of Sciences, also suggested on Wednesday to turn technologies mentioned in US Entity List into China’s future scientific research layout, for example, development of key raw materials and mask aligner for making chipset.  Global Times

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