<Anchor>

Reporter Kwon Aeri, a friendly economist on Tuesday. Reporter Kwon, the conflict between the two countries in China and China over Huawei seems to be getting sharper, but I think our companies are very nervous.

<Reporter>

Yes. It is a Chinese electronic and communication equipment company. Huawei has been at the heart of the US-China conflict last year. Last year, the conflict between the United States and China reached its peak, just a year ago, in May.

When President Trump announced the sanctions against Huawei one by one, it was when the situation in the U.S.-China trade conflict was serious that he and other countries, including us, actually noticed 'I do not want to use Huawei'.

Later, at the end of July last year, both sides of the US and China sat down at the negotiation table again, but the US sanctions against Huawei have not disappeared, and other negotiations have also taken place, stopping at a level that has not been added since then.

In other words, Huawei is the most important company when the United States wants to pressure China. On the contrary, there is a thing that China cannot withdraw from this company.

<Anchor>

What kind of company does Huawei continue to emerge as the core of the conflict between the two countries?

<Reporter> In

short, from China's point of view, Huawei is their future. It represents China's ambition to have greater power in the global economy.

We talk a lot about next-generation communication 5G. 5G is the technology of blood vessels of the future society.

Because, next-generation communication that can process an enormous amount of data at once can be realized smoothly, such as futures, smart factories, autonomous driving, and virtual reality.

However, it is this Huawei that is now considered to be the world's leading 5G technology standard. Huawei has the most 5G communication equipment in the world.

That's how it got even though it was so sanctioned by the United States. Chinese companies are laying the blood vessels of the future all over the world.

It is a company that can be said to be one of the winners in the future of technological supremacy, the key reason why the United States and China are in a trade conflict.

The United States believes that using Huawei's telecommunications equipment can create security problems. The Chinese government continues to be wary of stealing the confidentiality of countries using Huawei.

Huawei said, `` It is the excuse of the United States that it is due to cyber security. It's because it threatens the US hegemony. '

<Anchor>

I don't seem to know who's right, but first. However, this time, US sanctions will be a major blow to Huawei. There are predictions like this.

<Reporter>

Yes. Looking at the sanctions that the United States put down last year, it has put sanctions on Huawei to prevent the use of American semiconductors.

That's why parts of American companies used by Huawei, such as Qualcomm and Micron, are actually missing from Huawei products.

Then, the way Huawei found was a semiconductor design by a subsidiary of Huawei. This design was requested to be made by Taiwanese TSMC company. In this way, since last year, it has not been significantly contracted and has been operating.

The decision the United States made this time. The company that manufactures semiconductors based on Huawei's design is not an American company, and even if it is outside the United States, it is necessary to obtain US permission if there is any use of American technology or equipment.

It was aimed directly at TSMC. For all semiconductor manufacturers using US technology, Huawei's design prevented the possibility of making and supplying semiconductors.

It's been given a 120-day grace period, and it's reported that Huawei has actually ordered an additional 900 billion won worth of semiconductors to TSMC since the US announcement last weekend.

And there was a report that TSMC declined this. We will send you what you have already ordered, but you cannot take additional Huawei orders now.

It's on the American side. Huawei is also a big customer, but it seems to have decided that it cannot go against the United States.

<Anchor>

Will this situation affect Korean companies?

<Reporter>

First of all, I think the uncertainty has increased in Korea. This is because Huawei is a company that buys Korean semiconductors several trillion won a year.

It is also a competitor of Korean semiconductor and smartphone companies, but it is also a very large importer. In particular, in the current economic downturn, if exports to Huawei are hit, the impact may be greater than when the economy is good.

But in the long run, there is also a view that it can be an opportunity to increase our company's market share and competitiveness in major fields such as the communication equipment sector that Huawei has been leading.

However, China is also investing heavily in localization of semiconductors and localization of semiconductors from their standpoint as the conflict with the United States is repeated.

As the size of the market where Korean companies can make money may be reduced in size, we also need to keep an eye on what is going on.