Trump administration piles more restrictions on Huawei

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A new rule from the Trump administration will stymie Huawei's attempts to backfill its already sanctioned semiconductor chips with products from other companies

to restrict the sale of U.S. software to Huawei that the Chinese company could use to produce microchips necessary to run its telecom systems and smartphones.The new rule will now expand those restrictions to cover chips not designed by Huawei, but that the company could use instead of its own technology.

“What in May was aimed squarely at Huawei’s indigenous chip design, the rule today amends that and attempts to capture Huawei backfilling its indigenously designed chips with chips from other manufacturers,” a Commerce official told reporters on a Monday morning. Monday’s announcement comes as President Donald Trump escalates his attacks on China, going after apps TikTok and WeChat as well as telecom companies like Huawei and ZTE. The Commerce Department first added Huawei to its trade blacklist in May 2019.

“Huawei and its foreign affiliates have extended their efforts to obtain advanced semiconductors developed or produced from U.S. software and technology in order to fulfill the policy objectives of the Chinese Communist Party,” Commerce Secretary Wilbur Ross said in a statement. “As we have restricted its access to U.S. technology, Huawei and its affiliates have worked through third parties to harness U.S. technology in a manner that undermines U.S.

 

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