Commerce announces new Huawei restrictions

The Commerce Department announced Friday that it would restrict Chinese telecom group Huawei’s ability to use American technology and software to manufacture semiconductors, the latest step by the Trump administration to crack down on the company.

The new rule requires companies selling chips — semiconductors used in cellphones and other electronic devices — to Huawei that are made abroad with any U.S. parts or technologies to obtain a license, blocking Huawei from access to a large share of chip production.

Short reprieve: The Commerce Department also extended the temporary license allowing certain American companies to do business with Huawei despite the company’s inclusion on its “entity list,” which essentially blacklists the telecom group.

Huawei was added to the list last year, but the agency has issued a temporary extension since then to give U.S. businesses time to transition away from using Huawei equipment. The new 90-day extension runs through August.

“Despite the Entity List actions the Department took last year, Huawei and its foreign affiliates have stepped-up efforts to undermine these national security-based restrictions through an indigenization effort. However, that effort is still dependent on U.S. technologies,” Commerce Secretary Wilbur Ross said in a statement on Friday.

“This is not how a responsible global corporate citizen behaves,” he added. “We must amend our rules exploited by Huawei and HiSilicon and prevent U.S. technologies from enabling malign activities contrary to U.S. national security and foreign policy interests.”