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US revokes licences to supply chips to Huawei

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In the US, the Biden administration has cancelled export licences that allowed Intel and Qualcomm to supply semiconductors to Huawei.

The move by the US Department of Commerce affects Huawei’s supply of chips for its laptops and mobile phones, the Financial Times (FT) reported, citing people familiar with the matter.

The Commerce Department confirmed to the FT that it had revoked certain export licences for Huawei, but did not specify which US companies were affected.

We continually assess how our controls can best protect our national security and foreign policy interests, taking into account the ever-changing threat environment and technological landscape. As part of this process, we sometimes revoke export licences, as we have done in the past,’ the spokesman said.

A person familiar with the matter said the Commerce Department had notified affected companies, but did not elaborate.

Meghan Harris, an export control specialist at consultancy Beacon Global Strategies, said: ‘This is an important action that shows how seriously the US government takes national security threats from Chinese technology and is not backing down. Industry and foreign partners have been watching to see if the administration would soften its stance, this is a clear indication that it won’t, and we should expect any subsequent administration to continue down this path,’ she said.

The move comes at a time when the US is concerned about Huawei’s ability to develop advanced chips despite extensive export controls that will be introduced in 2022. When US Commerce Secretary Gina Raimondo visited China last year, Huawei launched its Mate 60 Pro smartphone with an advanced chip that surprised experts.

Republicans push for more bans

Washington has already imposed tough restrictions on US technology sales to Huawei, but Republican members of Congress are urging President Joe Biden to take even tougher action against Huawei.

Marco Rubio, the Republican vice chairman of the Senate Intelligence Committee, and Elise Stefanik, a Republican in the House of Representatives, called on Raimondo last month to revoke Huawei licences after it emerged that the Shenzhen-based group was building laptops using Intel chips.

It is clear from these trends that Huawei, a company that was blacklisted just a few years ago, is making a comeback,” the congressmen wrote in their letter.

Following publication of the letter, Intel announced that it strictly complies with all laws and regulations in the countries where it does business.

Huawei’s MateBook X Pro laptop, released last month, uses Intel’s Core Ultra 9 chip.

Michael McCaul, the Republican chairman of the House Foreign Affairs Committee, has repeatedly called on the Commerce Department’s Bureau of Industry and Security to take a tougher stance on Huawei. In a letter last year, he expressed concern that the Chinese group ‘may still be able to purchase significant amounts of US technology’.

Rubio told the FT: ‘This is the right decision, but the licence should never have been granted in the first place. The Biden administration needs to be proactive in rejecting critical technology from Chinese companies, not just reactive when alerted by lawmakers who take the threat seriously,’ Rubio told the FT.

Reaction from China: Economic bullying

The Chinese embassy in Washington described the move as ‘blatant economic bullying’.

Arbitrarily imposing restrictions or forcibly trying to unbundle [economies] to serve a political agenda violates the principles of market economy and fair competition, undermines the international economic and trade order, disrupts and destabilises global industry and supply chains, and ultimately harms the interests of the whole world,’ said embassy spokesman Liu Pengyu.

AMERICA

Trump and Biden neck-and-neck in key battleground states

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US President Joe Biden and Republican rival Donald Trump are running neck-and-neck in the November presidential election, according to a new Reuters/Ipsos poll.

Forty per cent of registered voters in the eight-day survey, which ended on Tuesday, said they would vote for Democrat Biden if the election were held today, while the same proportion chose former US president Trump. This is little changed from Biden’s 1-point lead in the Reuters/Ipsos poll conducted on 29-30 April.

According to the poll, which has a margin of error of about 2 percentage points among registered voters, many voters remain undecided nearly six months before the November 5 election.

Twenty per cent of registered voters surveyed said they had not chosen a candidate, were leaning towards third party options or might not vote at all.

Thirteen per cent said they would vote for Robert Kennedy Jr, who entered the race as an independent, if he appeared on the ballot with Trump and Biden. In the previous poll, conducted in April, Kennedy had 8% support.

While the ongoing lawsuits against him challenge Trump, Biden faces difficulties because of his age and his stance on the Gaza war.

When respondents were not given the option of voting for a third candidate or saying they were not sure who they would vote for, both candidates were tied at 46 per cent among registered voters; 8 per cent of respondents declined to answer the question.

Among registered voters who say they are “absolutely certain” they will vote in November, Biden leads by a slim 3-point margin.

In the 2020 presidential election, when Biden defeated Trump, only two-thirds of voters went to the polls.

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Pro-Palestinian protesters demonstrate inside CUNY Graduate Center in Manhattan

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In the US, pro-Palestinian protesters briefly occupied the lobby of the CUNY Graduate Center in Manhattan on Tuesday night, nearly two weeks after a massive police crackdown at the City College of New York (CUNY) and other campuses.

Students demonstrated for several hours in the lobby, hanging banners and calling the centre’s library the “Aqsa University Library”.

Aqsa University, the oldest public university in Gaza, was demolished during the Israeli occupation.

Outside the Graduate Centre, a group of protesters waved Palestinian flags in the rain in support of their friends. Dozens of police lined the street outside the building, but did not enter.

Students participating in the demonstration called on the administration to negotiate divestment from “Israeli arms, technology and surveillance companies”.

At 10.30 p.m. US time, the students emerged from the Graduate Centre and declared victory, telling protesters on the street that after negotiations, the CUNY administration had agreed to take their demands to the entire student body.

The protesters then evacuated the library and staff immediately began cleaning it.

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US announces new tariffs on China

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US President Joe Biden has slapped new tariffs on cheap electric vehicles, batteries, solar equipment and other products imported from China.

“President Biden’s economic plan supports investment and creates good jobs in key sectors vital to America’s economic future and national security,” the White House said in a statement.

Claiming that China’s “unfair trade practices” in technology transfer, intellectual property and innovation threaten American companies and workers, Washington said Beijing was also flooding global markets with “artificially low-priced exports”.

In this context, the White House announced that Joe Biden had directed the US Trade Representative to increase tariffs on $18 billion of Chinese imports under Section 301 of the 1974 Trade Act in order to “protect American workers and businesses” in “response to China’s unfair trade practices” and to “remedy the resulting injury”.

Arguing that American workers and businesses can outperform anyone else “as long as there is fair competition”, the White House claimed that the Chinese government has long resorted to “unfair, non-market practices”.

“China’s forced technology transfers and intellectual property theft have created unacceptable risks to America’s supply chains and economic security by allowing it to control 70, 80 and even 90 per cent of global production of critical inputs needed for our technologies, infrastructure, energy and health care,” the statement said.

It also noted that these “non-market policies and practices” have contributed to China’s growing overcapacity and export surges that “threaten to significantly harm” American workers, businesses and communities.

“The actions taken today against China’s unfair trade practices are carefully targeted at strategic sectors where the United States, under President Biden, has made historic investments to create and sustain good-paying jobs, unlike recent Republican proposals in Congress that would threaten jobs and raise costs across all sectors,” the Biden administration said, also criticising Republican proposals.

The new tariffs announced by the White House are as follows:

– From 25 per cent to 100 per cent in 2024 for electric vehicles;

– Tariffs on lithium-ion batteries for electric vehicles from 7.5 per cent to 25 per cent in 2024;

– For semiconductors, from 25 per cent to 50 per cent by 2025;

– For solar cells from 25% to 50% in 2024;

– 0% to 50% in 2024 for certain medical products such as syringes and needles;

– Tariffs on certain steel and aluminium products from 0-7.5% to 25% in 2024.

National Economic Council Director Lael Brainard told reporters that they were designed to ensure that US green technology and manufacturing industries “are not undermined by a flood of unfairly low-priced exports from China in areas such as electric vehicle batteries, critical medical devices, steel and aluminium semiconductors, and solar energy”.

According to Axios, Biden administration officials said they do not know how or if Beijing will retaliate, but they expect Beijing to speak publicly and raise its voice.

“I hope we don’t see a significant response from China, but that’s always a possibility,” Treasury Secretary Janet Yellen told Bloomberg.

White House officials argue that the tariffs will not increase US inflation because the amount of goods they target is too small.

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