Washington D.C. — United State’s Department of Commerce announced a series of new restrictions that will be placed on Chinese tech giant Huawei, the foremost smartphone brand in the world ahead of Apple and Samsung.
The move was made as a result of national security concerns with the company, and will severely restrict Huawei’s access to U.S. technologies in order to protect US 5G infrastructure interests.
“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,” said Commerce Secretary Wilbur Ross. “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. national security and foreign policy interests. This multi-pronged action demonstrates our continuing commitment to impede Huawei’s ability to do so.”
Secretary of State Mike Pompeo commended the Commerce Department for the decision to expand its product rules, as the department views Huawei as an extension of the Chinese Community Party.
In May 2020, Bureau of Industry and Security amended its Foreign Direct Product rule to target Huawei’s acquisition of semiconductors that are the direct product of certain U.S. software and technology. The rule now applies to 38 Huawei affiliates in 21 different countries.
“The Department of State strongly supports the Commerce Department’s expansion today of its Foreign Direct Product Rule, which will prevent Huawei from circumventing U.S. law through alternative chip production and provision of off-the-shelf (OTS) chips produced with tools acquired from the United States,” he said in a statement released Monday. “This measure follows the more limited expansion of the Foreign Direct Product Rule in May, which Huawei has continuously tried to evade.”
“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,” Mr. Pompeo continued. “The United States will continue to restrict most U.S. exports to Huawei and its affiliates on the Entity List for activities that threaten U.S. national security and international stability. We urge our allies and partners to join us.”