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Prosecutors charged Chinese nationals Guochun He and Zheng Wang with trying to interfere in prosecution of an international telecommunications company. While court documents did not name the company, a person familiar with the investigation said they were trying to interfere with the prosecution of Huawei (HWT.UL). Register now for FREE unlimited access to Reuters.com RegisterA spokesperson for Huawei could not be reached for comment on Monday. Prosecutors also unveiled charges against four Chinese nationals in what they called a long-running intelligence campaign. The complaint against He and Wang alleges they tried to obtain confidential information concerning witnesses, trial evidence and any potential new charges the company could face.
WASHINGTON, Oct 24 (Reuters) - The United States said on Monday it had taken note of the Communist Party congress in strategic rival China that confirmed Xi Jinping in an unprecedented third term as leader, and stressed the importance of keeping lines of communication open. read moreState Department spokesperson Ned Price told a regular briefing the party congress would not bring a change in the U.S. approach to China, which he referred to by the initials of its official name. "We continue our efforts to keep lines of communication open, including at the leader level," she said. "We believe it important to keep those conversations ongoing and we will continue to do that." Xi secured an unprecedented third leadership term on Sunday and introduced a top governing body stacked with loyalists, cementing his place as China's most powerful ruler since Mao Zedong.
Now, the United States is going after China's advanced computing and supercomputer industry. The provision called the foreign direct product rule, or FDPR, was first introduced in 1959 to control trading of U.S. technologies. So they expanded the FDPR to control trade of chips made using U.S. technology or tools. The latest move would ban any semiconductor manufacturing firm that uses American tools - which most do - from selling advanced chips to China, said Karl Freund, a chip consultant at Cambrian AI who watches the supercomputing space. In that case, it could take China five to 10 years to catch up to today's technology, he added.
The raft of measures could amount to the biggest shift in U.S. policy toward shipping technology to China since the 1990s. If effective, they could hobble China's chip manufacturing industry by forcing American and foreign companies that use U.S. technology to cut off support for some of China's leading factories and chip designers. The rules published on Friday also block shipments of a broad array of chips for use in Chinese supercomputing systems. "The U.S. should stop the wrongdoings immediately and give fair treatment to companies from all over the world, including Chinese companies." On Saturday, China's foreign ministry spokesperson Mao Ning called the move an abuse of trade measures designed to reinforce the United States' "technological hegemony".
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