The U.S. Commerce Department has announced that it’s placing stricter trade restrictions on Huawei, Reuters reports.
The government will be expanding restrictions imposed in May that prevents the Chinese telecom giant from obtaining semiconductors without a special license. The original rules left open a loophole that allowed Huawei to go through third parties or use other “evasive measures,” such as using commercially available products, Commerce Secretary Wilbur Ross told Fox Business
“The new rule makes it clear that any use of American software or American fabrication equipment is banned and requires a license,” Ross said.
Limiting Huawei access to chips
In a statement Monday, Secretary of State Mike Pompeo said “Huawei has continuously tried to evade” U.S. restrictions imposed in May. The Department has now added 38 Huawei affiliates to the nation’s banned entity list.
“The Trump Administration sees Huawei for what it is – an arm of the Chinese Communist Party’s (CCP’s) surveillance state – and we have taken action accordingly,” Pompeo said in the statement. “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.”
“We are backing up our words with actions across the U.S. Government. The Department of Justice has indicted Huawei for stealing U.S. technology, conspiracy, wire fraud, bank fraud, racketeering, and helping Iran to evade sanctions, amongst other charges,” Pompeo added.