China’s Huawei created US economic crisis: Consumer Technology Association CEO
Chinese tech giant Huawei could be cutting ties with American chip makers and suppliers, resorting to using a different provider.
In an exclusive interview with FOX Business’ Liz Claman, Consumer Technology Association CEO Gary Shapiro said Huawei’s current survival mode has created an economic crisis on the industry.
“We are 2,000 American technology companies. We are great patriots. We believe that if there’s a national security problem, we should address it. But the ramifications of this one, they go very, very deep,” he said on Tuesday.
The Trump administration granted a 90-day reprieve for Huawei suppliers, allowing U.S. companies to do business with the Chinese tech company. Shares of U.S. chipmakers spiked Tuesday after news of the reprieve.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XLNX | NO DATA AVAILABLE | - | - | - |
| QCOM | QUALCOMM INC. | 158.53 | +2.13 | +1.36% |
| CREE | NO DATA AVAILABLE | - | - | - |
| KOPN | KOPIN CORP. | 1.20 | +0.02 | +1.34% |
| LRCX | LAM RESEARCH CORP. | 73.88 | +2.31 | +3.23% |
| LITE | LUMENTUM HOLDINGS INC. | 86.97 | +3.20 | +3.82% |
| GOOGL | ALPHABET INC. | 171.05 | +2.10 | +1.24% |
| GLW | CORNING INC. | 48.67 | +0.45 | +0.93% |
| INTC | INTEL CORP. | 24.05 | +0.40 | +1.69% |
| MU | MICRON TECHNOLOGY INC. | 98.69 | +0.74 | +0.76% |
Last week, President Trump announced an executive order instructing the Commerce Department to prevent U.S. companies from using telecom equipment from manufacturers who pose a national security risk. Huawei founder Ren Zhengfei downplayed the impact the White House’s executive order will have on the company’s core business and its ability to do business with U.S. tech giants Google and Qualcomm.
“In such a critical moment, I’m grateful to U.S. companies, as they’ve contributed a lot to Huawei’s development and showed their conscientiousness on the matter,” Ren said.
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Shapiro said isolating the U.S. from rest of the world may not be the best strategy. He suggests banning Huawei products, but don’t prohibit U.S. companies from selling to the Chinese telecom company.
“If you want to go after a real problem that’s national security … as narrow as possible, focus on the issue,” he said.