The approval-dependent trade obligation that the US has applied to Chinese companies for the last 4 years due to state-sponsored cyber spying and national security reasons has continued to get heavier with each passing year. These restrictions, which Huawei is most affected by, will not slow down in the new year.Huawei embargoes hurt US companies
In the case of Huawei, many Chinese companies on the black list are prohibited from accessing the latest technologies and production processes. For example, Huawei cannot access 5G technologies or manufacturing processes newer than 10nm. Instead, the company has to use Snapdragon processors with 4G support.
In 2023, it was on the agenda that the USA would further tighten the embargoes. For example, the latest technologies in artificial intelligence and popular technologies such as 4G will also be subject to regulatory approval. This means further restriction of access for Huawei.
Nvidia was expected to make an agreement with Huawei on artificial intelligence accelerators, but this may not happen due to new restrictions. Again, it will be harder for Qualcomm to supply 4G chips to Huawei. This means that both companies lose revenue. It is estimated that US companies, which have a record trade volume with China, will be affected more and more by the embargoes.
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