Local governments in China “don’t understand the industry,” Mr. Gu said. If China could catch up in making toys and then in producing cellphones, the thinking goes, then why not in semiconductors someday? For now, surviving without American chips promises to be the ultimate test for Huawei, despite the company’s recent strides in developing its own processors. Huawei has stockpiled chips for emergencies like this, Mr. Ren said. “We will not recklessly get rid of American chips,” Mr. Ren said.

Source: New York Times May 21, 2019 15:03 UTC