How U.S. chipmakers pressed Trump to ease China's Huawei ban

President Trump’s decision to allow U.S. companies to continue selling to Huawei Technologies Co. followed an extensive lobbying campaign by the U.S. semiconductor industry that argued the ban could hurt America’s economic and national security.

Representatives of chipmakers last month met with Commerce Secretary Wilbur Ross and Treasury Secretary Steven T. Mnuchin to argue that the decision to place the company on a so-called entity list could hurt the country, people familiar with the meeting said. Their talking points seem to have found their way to Trump. After concluding a high-stakes meeting with Chinese President Xi Jinping in Osaka, Japan, on Saturday, the U.S. president said American firms weren’t pleased with his Huawei policy and announced that he has agreed to let them keep shipping some of their components and technology.

White House trade advisor Peter Navarro on Tuesday said Huawei’s involvement in 5G networks remains a “national security concern” but the sale of a “small amount of low-level chips” isn’t a “bad thing” if it persuades China to return to trade negotiations.Although China hawks in Congress and Trump’s administration feared a potential reversal of the export ban, U.S. industry has been pushing the White House to ease restrictions that require American companies to get a U.S.

Chipmakers have been placed in a tough spot by the trade dispute and security-related action against Huawei. China is their biggest market, providing about a third of revenue. They say that not all exports to Huawei and its affiliates pose a security risk and that much of what’s sold there is easily replaceable with non-U.S. products. Given the massive cost of research and development for chips, continuing to miss out on revenue could hurt their competitiveness.

My smartphone is only an iPhone. 🇺🇸 And those guys should be under investigation for technology theft.

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