The US government has initiated an official investigation into an advanced China-made chip integrated into Huawei's latest smartphone.
According to Bloomberg, the Commerce Department, which has previously imposed a series of sanctions against both Huawei and China's chip sector, announced it is actively seeking more information about the purported 7-nanometer processor featured in the Mate 60 Pro.
This chip was manufactured by China's Semiconductor Manufacturing International Corp (SMIC), an entity blacklisted by the US government, thereby restricted from accessing US technology.
Visitors walk next to Chinese manufacturer Huawei stand at the Mobile World Congress (MWC), the telecom industry's biggest annual gathering, in Barcelona on February 28, 2023.
US Action Sparks a Debate
This revelation has sparked a debate in the country regarding the effectiveness of sanctions aimed at constraining a geopolitical rival. Simultaneously, China has expanded its ban on the use of iPhones in government-affiliated agencies and state-run enterprises.
The US has been striving to limit China's technological sector, primarily driven by concerns about potential advancements in military capabilities.
Conversely, China has articulated its own apprehensions about integrating foreign technology into critical industries, with a concerted effort to decrease dependence on American software and hardware.
According to Bloomberg, the possible tightening of regulations around iPhones poses a significant challenge to Apple's position in a market that accounts for approximately one-fifth of its revenue.
This market is also the primary manufacturing center for Apple's flagship product. In light of these developments, Apple's market capitalization has declined by roughly $200 billion in the past 48 hours, amplifying existing concerns related to China's impact on major US stock indices.
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New Phone of China Firm's Huawei
Huawei's discreet introduction of a mobile phone featuring technology that the US intended to keep out of Chinese hands has the potential to disrupt recent reconciliation endeavors by the Biden administration.
The phone was quietly made available online while Commerce Secretary Gina Raimondo was on an official visit to China last week. The Mate 60 Pro smartphone incorporates a notably high proportion of Chinese components in addition to its primary processor.
That suggests progress in China's efforts to bolster its domestic tech capabilities. US National Security Adviser Jake Sullivan has opted to withhold commentary until further information is obtained.
He said in a statement: "I can't give you an exact number of days but this is not going to be months down the road. We're going to want to look at this carefully, consult with our partners, get a clearer sense of what we're looking at, and then we'll make decisions accordingly."
Meanwhile, Huawei has unveiled an even more powerful smartphone, the Mate 60 Pro+. This model offers a maximum storage capacity of 1 terabyte and 4GB more memory than the standard Pro version.
According to Bloomberg, the unveiling led to a surge in shares of Huawei's suppliers on Chinese stock exchanges, hitting their 10% daily limit.
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