Commerce Department Tightens Reins On Huawei


The U.S. Department of Commerce (DOC) has doubled down its prohibition against Huawei Technologies Co.’s purchase of  technology and software from U.S companies, alleging it undermines the nation’s security and foreign policy interests.

“Today, we dealt a direct blow to Huawei and the repressive Chinese Communist Party by further limiting Huawei’s ability to acquire U.S. technology and compromise the integrity of the world’s networks and Americans’ private information,” Secretary of State Michael Pompeo tweeted.

The latest rule further restricts another 38 Huawei affiliates of the Chinese multinational technology company that develops and sells telecommunications equipment and consumer electronics from obtaining foreign made chips produced from U.S. software or technology.

Starting last year, the DOC’s Bureau of Industry and Security (BIS) required the Chinese company and 114 of its overseas affiliates wishing to export U.S. products  to obtain a license. But BIS said Huawei continued to use U.S. software and technology to design semiconductors, undermining the country’s national security and foreign policy interests by commissioning their production overseas.

“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 in a statement.

Last week, President Donald Trump implemented an order to prohibit U.S. companies from selling products to Huawei. The Trump administration has said it believes the company is a spy for the communist government in Beijing.

As 5G was being installed in Europe, the National Cybersecurity Agency of France (ANSSI) last month told telecom operators planning to buy Huawei’s 5G equipment that their licenses for the equipment will not be renewed. In effect, the rule will put an end to Huawei’s mobile networks in the country by 2028.

Also last month, the United Kingdom announced plans to ban companies in the country from buying equipment from the Chinese telecom and mobile phone giant.

The U.K.’s National Security Council said the ban will take effect at the end of the year. Mobile network operators also required to remove Huawei equipment from their systems by 2027.