The United States clampdown on Huawei Technologies continues as the Trump administration today announced it will further tighten restrictions on the Chinese company’s access to commercially available chips.
Reuters reported that the U.S Commerce Department will expand restrictions announced in May, targeted at Huawei, from obtaining semiconductors without a special license – including chips made by foreign firms that have been developed or produced with U.S. software or technology.
Sources also say that the administration will add 38 Huawei affiliates in 21 countries to the U.S. government’s economic blacklist, raising the total to 152 affiliates since Huawei was first added in May 2019.
Commerce Secretary Wilbur Ross told Fox Business the restrictions on Huawei-designed chips imposed in May “led them to do some evasive measures. They were going through third parties,” Ross said. “The new rule makes it clear that any use of American software or American fabrication equipment is banned and requires a license.”
Secretary of State Mike Pompeo said the rule change “will prevent Huawei from circumventing U.S. law through alternative chip production and provision of off-the-shelf chips.” He added in a statement “Huawei has continuously tried to evade” U.S. restrictions imposed in May.
Huawei did not immediately comment.
The U.S-China relationship is currently at its lowest ebb in decades. The United States is forcing the hands of governments around the world to freeze Huawei out arguing that the company will hand over data to the Chinese government for spying. Huawei denies it spies for China.
The new actions, effective immediately, should prevent Huawei’s attempts to circumvent U.S. export controls, Commerce said.
One Commerce Department official in an interview with Reuters said, It “makes clear that we’re covering off-the-shelf designs that Huawei may be seeking to purchase from a third-party design house.”
A new separate rule requires companies on the economic blacklist to obtain a license when a company like Huawei on the list acts “as a purchaser, intermediate consignee, ultimate consignee, or end-user.”
The department also confirmed it will not extend a temporary general license that expired Friday for users of Huawei devices and telecommunication providers. Parties must now submit license applications for transactions previously authorized.
According to Reuters, the Commerce Department is adopting a limited permanent authorization for Huawei entities to allow “ongoing security research critical to maintaining the integrity and reliability of existing” networks and equipment.
Existing U.S. restrictions have already had a heavy impact on Huawei and its suppliers. The May restrictions do not fully go into effect until Sept. 14.
On Aug. 8, financial magazine Caixin reported Huawei will stop making its flagship Kirin chipsets next month due to U.S. pressure on suppliers.
