Trump administration cracks down further against Huawei chip production, affiliate groups

The Commerce Department’s Bureau of Industry and Security on Monday announced further steps to push back against Chinese telecommunications company Huawei and blacklisted 38 of its affiliate groups.

The moves on Monday expanded a previous decision by the Commerce Department in May to restrict Huawei’s ability to use American software and technology to manufacture semiconductors or chips.

The new announcement is intended to limit Huawei’s access to chips by restricting its ability to purchase those created by a foreign company with the use of American software or technology.

In addition, 38 Huawei affiliate groups were all added to the Commerce Department’s “entity list” on Monday, banning U.S. firms from doing business with them.

Huawei was added to the entity list last year, though the full addition had been delayed several times by a temporary general license that expired last week, with the delay intended to help rural telecom groups that had previously relied on Huawei equipment.

The Commerce Department announced Monday that the license would not be extended any further, but created an exception for users sending information on cybersecurity vulnerabilities in Huawei equipment to the Chinese group.

The 38 Huawei affiliate companies added to the entity list are based in 21 countries, including Huawei Cloud groups in France, Peru, Argentina, Chile, the Netherlands, Russia and Singapore.

Secretary of Commerce Wilbur Ross said in a statement Monday that “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.”

“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,” Ross added. “This multi-pronged action demonstrates our continuing commitment to impede Huawei’s ability to do so.”

A spokesperson for Huawei did not immediately have a comment on the Commerce Department announcement.