US targets Huawei with tighter chip export rules; China could retaliate

The United States on Friday announced new regulations targeting Chinese telecommunications equipment company Huawei Technologies, which could spread more wings in the Asian nation.

US Department of Commerce announces new export rules to prohibit Huawei’s acquisition of US technology to make its semiconductors and chipsets Reuters The report stated.

The Trump administration will continue to prohibit exports to Huawei, with a new rule released yesterday that would prevent companies around the world from using American-made machinery and software, or chips for the Chinese telecommunications firm of its institutions Will continue to produce.

This is the latest action to target Huawei, considered a national security threat by the US. Now American tech companies making chipmaking equipment are feared Chinese retaliation and hammer. China’s response was swift, stating that it was ready to put American companies on the “unreliable entity list” as part of the retaliatory response to new limits on Huawei.

The new rule prohibits semiconductor manufacturers that use American technology and software in chip design from shipping to Huawei without the permission of the US government. BBC Reported. The Trump administration’s latest move will require the US authority to license sales of semiconductors made overseas with US technology to Huawei, which expands its reach to curb exports to China.

The US Department of Commerce announced that it would extend a license that allows some US companies to continue doing business with Huawei for another 90 days.

US Secretary of State Michael Pompeo said in a statement on Friday that the US would continue to restrict the majority of US exports to Huawei and its affiliates for activities that threaten national security and international stability.

“The US government today took another step to protect US national security and the integrity of the 5G network, expanding the Department of Commerce’s Foreign Direct Products rule to prevent Huawei from circumventing US law,” Pompeo said .

He also said that the US would not tolerate efforts by the Chinese Communist Party to undermine the privacy of its citizens or the integrity of the next generation network worldwide.

Tighter control comes a year after the US cut off Huawei, the world’s second-largest smartphone maker, with access to the US-made semiconductor chip, which is the backbone of most computer and phone systems.

US Department of Commerce Secretary Wilbur Ross said those efforts were “still dependent on US technologies”, and accused Huawei of taking steps to “ease former export controls”.

“This is not how a responsible corporate citizen behaves. We should amend our rules exploited by Huawei … and prevent US technologies from enabling deadly activities contrary to US national security and foreign policy interests” , Ross said.

Wall Street Journal Recently it was reported that Huawei’s handset shipments outside China have fallen by 35 percent, putting its position as the world’s second-largest handset manufacturer at risk.

Huawei, which is in need of semiconductors for its smartphones and telecom devices, has found itself amid a battle of global technological dominance between the United States and China, whose relationship has gone sour in recent months due to the origin of the deadly coronary virus.

While the rule change is aimed at squeezing Huawei and it relies on it to chip foundry, American manufacturers of chipmaking equipment may face long-term pain if chipmakers develop new equipment sources beyond the reach of US regulations. Huh.

In May last year, Washington blacklisted Huawei and barred nearly 70 of its partners from buying American technology and doing business with American companies without the relevant governmental authority.

The Trump administration accused Huawei of collaborating with Chinese intelligence services and using its equipment for illegal surveillance purposes and thus posing a threat to US national security and global stability. However, the company describes the allegations as unfair and politically motivated. The US has said that Huawei’s technology can be used for espionage by the Chinese government.

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