New Huawei Smartphone Reignites Debate On U.S. Sanctions' Impact On China's Tech Progress

The launch of the Mate 60 Pro, the newest smartphone from Huawei Technologies Co., has sparked a debate in Washington D.C. about the effectiveness of U.S. sanctions in halting China’s tech development.

What Happened: Huawei unveiled its latest device online this week, coinciding with U.S. Commerce Secretary Gina Raimondo‘s visit to China. The smartphone, which boasts a domestically designed and manufactured chip, represents a significant leap in China’s tech prowess. This has happened despite the U.S. export controls implemented by the Trump administration and maintained under President Biden, which were intended to impede China’s tech development.

Paul Triolo of the Albright Stonebridge Group, a business consulting firm based in Washington, told Washington Post that the launch of the Mate 60 Pro is a “major blow” to Huawei’s former tech suppliers, most of which are American companies. The launch has rekindled debates about the effectiveness of U.S. sanctions. Triolo noted the “major geopolitical significance” of the launch, pointing out that it demonstrates the ability to design a product without relying on U.S. technology.

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While the power of Huawei’s new chip design is unclear, the company claims to have made advancements in “satellite communications.” State media in China hailed the launch as proof of the “failure” of the U.S. trade war. The unveiling of a domestically produced seven-nanometer chip seems to contradict the sanctions’ goal of slowing China’s progress in fields like artificial intelligence and big data.

Discussions about future steps have begun in light of the new Huawei phone’s launch. “There is a lot of activity,” said Craig Allen, president of the U.S.-China Business Council, suggesting the possibility of tighter export controls or a change in tactics.

Why It Matters: Earlier this year, rumors circulated that Huawei was testing 5G baseband chips and System-on-a-Chip or SoCs for a flagship handset. This news followed Huawei CEO Richard Yu’s announcement of a comeback for the company’s flagship smartphones. The launch of the Mate 60 Pro confirms these speculations and marks a significant step in Huawei’s recovery in the market despite previous sanctions.

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