US tightens restrictions on Huawei to close trade loopholes

It won’t allow Huawei to go through third parties or buy off-the-shelf chips.

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Huawei logo is pictured on the headquarters building in Reading, Britain July 14, 2020. REUTERS/Matthew Childs
Matthew Childs / reuters

The US government isn’t done attempting to block Huawei. Today, the US Commerce Department announced that it’s expanding trade restrictions meant to prevent Huawei from obtaining semiconductors without a special license, Reuters reports

The restrictions include chips made by foreign firms that have been developed or produced with US software and technology. According to Commerce Secretary Wilbur Ross, the original rules, imposed in May, allowed Huawei to go through third parties or use commercially available, off-the-shelf products. 

“This new rule makes it clear that any use of American software or American fabrication equipment is banned and requires a license,” Ross told Fox Business.

The US is also adding another 38 Huawei affiliates from 21 countries to the US government’s economic blacklist, Reuters says. That brings the total of banned Huawei affiliates to 152. This comes just days after the Commerce Department stopped granting Huawei temporary licenses to keep supporting existing US customers.

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