Biden must prevent China’s bid for 5G market dominance

A Chinese multinational technology corporation must be prevented from building the Pengxinwei IC Manufacturing Company (PXW) semiconductor plant, which could hurt America’s chances of leading the 5G revolution, according to U.S. Sen. Marsha Blackburn (R-TN) and several of her GOP colleagues.

The PXW semiconductor foundry, which is aligned with China-based Huawei Technologies Co. Ltd., “is designed to fatally undermine the U.S. strategy to counter the Chinese Communist Party’s (CCP) bid to dominate global 5G markets and strengthen its intelligence and repression apparatus,” the senators wrote in an Oct. 13 letter sent to President Joe Biden.

“We are deeply concerned that, despite the obvious threat that PXW poses, your administration has taken no official steps to delay the project’s progress, despite being aware of the project for some time,” wrote Sen. Blackburn and her four colleagues.

Huawei began construction more than seven months ago on the PXW factory, according to the senators, who cited a Bloomberg report. PXW is expected to mass produce advanced chips there that are expected to be sold to Huawei, wrote the senators, who added that PXW reportedly has already ordered the advanced equipment necessary to build the chips. 

“This would represent a dangerous leap in Chinese semiconductor manufacturing,” Sen. Blackburn and the lawmakers wrote. “With these new chips for its base stations, Huawei could resume its march towards 5G market dominance, and the CCP will advance its plan to control global telecommunications and extend its economic espionage and repression.”

In their letter, the senators requested that export controls be instituted to deter further construction of the factory and that PXW be blacklisted.

“Export controls are among our nation’s foremost tools to win the economic long war with China,” they wrote. “Your administration should blacklist PXW immediately, unless you wish to preside over the unraveling of the U.S. campaign against Huawei and the CCP’s bid for global 5G dominance.”