Chinese social media users are enjoying poking fun at the U.S. government and its perceived ineffectiveness in implementing technology sanctions on chipmaking equipment. U.S. Secretary of Commerce Gina Raimondo has become a particular target, especially since her visit to China coincided with the launch of the Huawei Mate 60 Pro, a smartphone packed with cutting-edge Chinese technology exclusively produced by the heavily sanctioned Chinese chipmaker SMIC.
In a humorous twist, Raimondo has been playfully portrayed as a Huawei brand ambassador in memes circulating online. This phenomenon underscores Huawei’s remarkable recovery and resilience despite facing several years of U.S. sanctions and trade restrictions, as outlined in Huawei Central’s coverage of this story. Huawei’s success in developing the sanctions-defying Kirin 9000S SoC, the powerhouse behind the new Huawei Mate 60 Pro, and other related technological breakthroughs has become a source of amusement. Notably, many of these advanced technologies may not have been developed and manufactured in China if not for the extensive sanctions imposed by the U.S.
Huawei’s impressive rebound from the challenges brought about by U.S. sanctions will likely be celebrated in China. As one of the first and most U.S.-technology-dependent companies to face commercial setbacks due to U.S. sanctions and China trade restrictions starting in 2018, Huawei’s resilience and achievements are a cause for optimism in China’s tech industry.
Remarkable Comeback of Huawei with Advanced Semiconductor Technology
Until then, Huawei had been making significant strides in Western consumer and commercial markets with confidence. However, their fortunes took a hit when they were blacklisted in 2019. This had a particularly adverse impact on their smartphone business. They were unable to utilize U.S. hardware components like Qualcomm SoCs or modems, and they were also barred from using Google’s Android operating system. Consequently, their smartphone market share outside of China declined rapidly.
Nevertheless, there’s a surprising twist to this story. Huawei has managed to make a remarkable comeback, defying expectations from just a few years ago.
As reported recently, Huawei has introduced a breakthrough System-on-Chip (SoC) with the Kirin 9000S. This chip features advanced 3D stacking technology and is packed with domestically developed CPU and GPU cores (though it’s believed that the CPU is based on the Armv8a ISA).
Furthermore, the Chinese chip manufacturer SMIC, which has faced increased pressure due to U.S. sanctions, has been working diligently to improve its semiconductor manufacturing capabilities. SMIC’s manufacturing line now relies on cutting-edge technology, specifically the Twinscan NXT:2000i deep ultraviolet (DUV) lithography scanners. It is reported that the Kirin 9000S is produced by SMIC using these machines as part of their 2nd generation 7nm fabrication process. However, it’s worth noting that this process currently faces challenges with low yields and, consequently, high production costs.
The Need for Prudent and Informed Sanction Policies
In summary, it is imperative for governments to engage in thorough and meticulous deliberation when contemplating the imposition of sanctions. While sanctions can serve as a tool to maintain a competitive edge over adversaries, the intricate details of their implementation must be discerned through the lessons gleaned from the remarkable resurgence of blacklisted companies such as Huawei and SMIC.
In essence, governments must exercise prudence and foresight when considering the potential repercussions of their actions. To assert geopolitical influence, sanctions should not be wielded recklessly but rather with a keen awareness of the intricate web of consequences they may weave.
The recent experiences with Huawei and SMIC underscore the need for a nuanced approach. Once placed on blacklists, these companies have adapted and thrived despite the restrictions imposed upon them. This unexpected resilience highlights the importance of learning from such cases to inform future decisions regarding sanctions better.
In this evolving landscape of global competition, where technology and innovation play a pivotal role, governments must cultivate a more sophisticated understanding of the dynamics at play. Sanctions should not be viewed as a one-size-fits-all solution but rather as a tool requiring delicate calibration and constant reassessment.
In conclusion, the world of geopolitics demands a judicious and measured approach when it comes to sanctions. Governments must take into account the intricate nuances of their application, as exemplified by the experiences of Huawei and SMIC, to navigate the complex terrain of international relations effectively and with a clear vision of the potential unintended consequences that may arise.
