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U.S. tightens limits on Huawei production

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U.S. tightens limits on Huawei production

On Monday, the Trump administration announced that it would further increase sanctions on Huawei Technologies, with the intention of easing down on its exposure to commercial chips.

The actions of the U.S. Commerce Department, first reported by Reuters, will expand the restrictions announced in May to prevent the Chinese telecommunications giant from obtaining semiconductors without a special license-including chips made by foreign companies that were developed or produced using U.S. software or technology.

State Secretary Mike Pompeo said in a statement Monday the Commerce Department added 38 Huawei affiliates to the economic blacklist of the U.S. government. That raises the total since the Chinese company was first introduced in May 2019, to 152 affiliates.

Huawei is a danger to the US

“The Trump Administration sees Huawei for what it is. An arm of the security state of the Chinese Communist Party ( CCP). And we took action accordingly”. Pompeo said in the speech.

Secretary of Commerce Wilbur Ross told Fox Business the sanctions placed in May on Huawei-designed chips “directed them to take some evasive action. They went to third parties,’ said Ross. State Secretary Mike Pompeo said the rule reform “would prohibit Huawei from circumventing U.S. Legislation by manufacturing alternate processors by offering off-the-shelf processors.” He said U.S. sanctions placed in May in a statement “Huawei has consistently sought to evade”

the Chinese company did not comment forthwith.

With U.S.-China relations at their worst in decades, Washington is pushing governments around the world to squeeze out the Chinese company. Arguing that it would hand in data for spying to the Chinese government. Huawei denies China that it spies.

The new actions are also effective immediately. They should also prevent attempts by the Chinese company to circumvent controls on US exports, Commerce said.

This “made it also clear that we are protecting off-the-shelf prototypes. That Huawei might be trying to buy from a house designed by a third party”. One official from the Commerce Department also told Reuters.

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