"Samsung Will Be an Opportunity" Urges Allies to Join US Anti-China Front

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The United States has called on its allies to join in pressuring Chinese telecommunications equipment company Huawei. The U.S. side stated that this would present an opportunity for Samsung Electronics and that it would not take issue with SK Hynix’s memory semiconductor exports to Huawei.

According to the U.S. State Department transcript on the 21st (local time), Keith Krach, Under Secretary of State for Economic Growth, Energy, and the Environment, mentioned during a conference call with Asia-Pacific region reporters the "5G Clean Path Initiative" announced by Secretary of State Mike Pompeo on the 29th of last month, saying, "This means not using any 5G equipment supplied by untrusted vendors such as Huawei and ZTE (Zhongxing Telecommunications)."

Under Secretary Krach stated regarding the 5G Clean Path Initiative, "All 5G data entering or leaving U.S. diplomatic facilities, including all embassies, must be transmitted through trusted equipment." He added, "We urge all our allies and partners to join us in demanding a '5G Clean Path' for your diplomatic facilities as well."

In his opening remarks, Under Secretary Krach said, "The pandemic was caused by the Chinese Communist Party’s strategy of concealment and coercion," and added, "This international crisis provides an opportunity for freedom-loving countries to come together under the banner of trust, transparency, and the rule of law."

This appears to be a clear message urging allied countries to join the anti-China, anti-Huawei front.

Regarding the Economic Prosperity Network (EPN) initiative, a known U.S. economic bloc effort aimed at decoupling global supply chains from China, Under Secretary Krach said, "In 5G economic security efforts, the U.S. recognizes that trust is the foundation of successful partnerships," and added, "Institutions that respect these values will prosper as partners, but those that do not are difficult to trust and pose threats to stability."

When asked about South Korea’s role in building the EPN, he said, "South Korea is a great ally of the United States and shares common values for trustworthy partnerships," and mentioned that discussions had taken place with South Korea. He emphasized, "The core value of the EPN is to expand and diversify supply chains that protect people within the free world," and added, "I believe this could be a great opportunity for South Korea as well."

Christopher Ford, Assistant Secretary of State for International Security and Nonproliferation, stated, "Countries are beginning to open their eyes to the threats posed by Chinese technology companies like Huawei from the perspectives of potential intelligence theft, promotion of human rights abuses, and strategic and political manipulation. They will increasingly seek genuinely trustworthy suppliers outside the ecosystem of Chinese tech companies," adding, "This will create opportunities for trustworthy suppliers worldwide, including, of course, South Korea’s Samsung."

Kordel Hull, Acting Director at the State Department, responded to a question about whether the revised semiconductor export regulations apply to companies like SK Hynix selling memory chips to Huawei by saying, "No, they do not. These regulations only apply to chips designed by Huawei that return to Huawei," indicating that SK Hynix would not be subject to them.

The U.S. position puts the South Korean government in a difficult situation. While the South Korean government is pursuing improved relations with China and even a visit by Chinese President Xi Jinping, it cannot rule out the possibility of U.S. pressure. Since LG Telecom also uses Huawei equipment, there is potential for it to become a target of U.S. scrutiny.

This content was produced with the assistance of AI translation services.