Huawei Credits US Sanctions for Boosting Growth
On May 31, 2026, Huawei publicly stated its "thanks" to the United States for the sanctions, explaining that the external pressure had paradoxically accelerated the development of China’s domestic semiconductor industry.
The statement was made by Eric Xu, Huawei's Rotating Chairman, in response to inquiries regarding the company's new chip development framework, the Tau (τ) Scaling Law, and logic folding chip architecture.
Xu argued that without the pressure applied by the U.S. government, China would not have committed to building a self-sufficient semiconductor supply chain. "If it weren't for the U.S. forcing our nation, our company, and our industry, we would not have had to do this," Xu stated. "But we are also grateful to the U.S., because it has allowed our country's semiconductor industry chain to truly grow. The momentum is very good now, everyone recognizes it, and we are all very supportive".
This sentiment has been a recurring theme for Huawei. In previous years, founder Ren Zhengfei downplayed the impact of the U.S. ban, stating that the 90-day temporary general license "bears little meaning" and that Huawei was fully prepared.
The company credits the sanctions for forcing it to accelerate research into alternative technologies, including building an independent ecosystem for artificial intelligence, operating systems (HarmonyOS), and chip design. He Tingbo, head of Huawei’s semiconductor business, also noted that the constraints served as an "engineering problem" to be solved, leading to innovative frameworks like the Tau Scaling Law, which moves beyond traditional transistor shrinking.