U.S. Tightens Restrictions On Huawei Access To Technology And Chips

Huawei

The Trump administration recently announced that it will tighten restrictions on Huawei Technologies, aimed at cracking down on the Chinese telecommunications giant access to commercially available chips.

In a statement Monday, Secretary of State Mike Pompeo said the Commerce Department added 38 Huawei affiliates to the U.S. government’s economic blacklist. That raises the total to 152 affiliates since Huawei was first added in May 2019. “The Trump Administration sees Huawei for what it is , an arm of the Chinese Communist Party’s (CCP’s) surveillance state  and we have taken action accordingly. We will not tolerate efforts by the CCP to undermine the privacy of our citizens, our businesses’ intellectual property, or the integrity of next-generation networks worldwide”, stated Mike Pompeo

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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: “Huawei has continuously tried to evade” U.S. restrictions.

With U.S.-China relations at their worst in decades, Washington is pushing governments around to world to squeeze Huawei out, arguing it would 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, the Commerce Department 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,” one Commerce official told Reuters.

A new rule requires companies on the economic blacklist to obtain a license when the company 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.

Huawei’s HiSilicon division has relied on software from U.S. companies such as Cadence Design Systems and Synopsys to design its chips and outsourced the production to Taiwan Semiconductor Manufacturing Co., which uses equipment from U.S. companies. TSMC has confirmed that it will not ship wafers to Huawei after September 15