China Vows to Protect its Rights against US Chip Probe

A Chinese flag is displayed next to a "Made in China" sign seen on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
A Chinese flag is displayed next to a "Made in China" sign seen on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
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China Vows to Protect its Rights against US Chip Probe

A Chinese flag is displayed next to a "Made in China" sign seen on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
A Chinese flag is displayed next to a "Made in China" sign seen on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo

China's commerce ministry vowed on Monday to take all necessary measures to safeguard its rights and interests in response to the United States' investigation into the Chinese semiconductor industry.

The investigation will disrupt global chip supply chains and harm the interests of US firms and consumers, the ministry statement said.

On Monday, the Biden administration announced a last-minute trade investigation into Chinese-made "legacy" semiconductors that could heap more US tariffs on chips from China that power everyday goods from autos to washing machines to telecoms gear, Reuters reported.

The "Section 301" probe, launched just four weeks before President-elect Donald Trump takes office on Jan. 20, will be handed over to his administration in January for completion, Biden administration officials said.

The effort could offer Trump a ready avenue to begin imposing some of the hefty, 60% tariffs that he has threatened on Chinese imports.

Departing President Joe Biden has already imposed a 50% US tariff on Chinese semiconductors that starts on Jan. 1. His administration has tightened export curbs on advanced AI and memory chips and chipmaking equipment to China and also recently increased tariffs to 50% on Chinese solar wafers and polysilicon.



Chinese Tech Giant Huawei Says Profits Fell 28% Last Year

(FILES) A Huawei logo is seen at the Mobile World Congress (MWC) in Shanghai on June 26, 2024. (Photo by AFP) / China OUT
(FILES) A Huawei logo is seen at the Mobile World Congress (MWC) in Shanghai on June 26, 2024. (Photo by AFP) / China OUT
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Chinese Tech Giant Huawei Says Profits Fell 28% Last Year

(FILES) A Huawei logo is seen at the Mobile World Congress (MWC) in Shanghai on June 26, 2024. (Photo by AFP) / China OUT
(FILES) A Huawei logo is seen at the Mobile World Congress (MWC) in Shanghai on June 26, 2024. (Photo by AFP) / China OUT

Chinese smartphone maker giant Huawei said Monday that profits fell 28 percent last year as it faced international economic uncertainty and weak consumption at home.

The Shenzhen-based company has been at the center of an intense standoff between China and the United States after Washington warned its equipment could be used for espionage by the Chinese government, an allegation Huawei denies.

Sanctions since 2019 have cut the firm's access to US-made components and technologies, forcing it to diversify its growth strategy.

The company announced Monday that it made a net profit of 62.6 billion yuan ($8.6 billion) last year, down from 87 billion yuan in 2023.

Revenue rose 22 percent on-year -- marking a third successive increase after a sharp drop in 2021 during the pandemic.

Its 862.1 billion yuan in revenue was the highest since the figure surpassed 890 billion yuan in 2020.

The results were "in line with forecast", the company's rotating chairwoman Sabrina Meng said in a statement, according to AFP.

Employees "banded together to tackle a wide range of external challenges", Meng said, adding that the firm was "firmly committed to its quality goals and will keep honing quality as a competitive edge".

US sanctions have since 2019 cut Huawei off from global supply chains for technology and US-made components, a move that initially hammered its production of smartphones.

Last year, the company unveiled its first smartphone equipped with a fully homegrown operating system, a test of its ability to challenge the dominance of Western juggernauts.

It also released the world's first triple-folding phone, launched hours after its US rival Apple lifted the curtain on its newest iPhone.

Apple remains popular among Chinese consumers but has ceded ground to domestic players such as Huawei in recent years.

Huawei remains one of the world's leading equipment manufacturers for 5G, the fifth generation of mobile internet, and has been involved in infrastructure projects in numerous countries.