Friday, 25 September 2020
The News and Media Division of The Insight Partners
Wednesday, 24 Jun 2020 05:00 pm

Trump administration sees no loophole in new Huawei curb

The U.S. government sees no loopholes in a new rule aimed at crimping global chip sales to China’s Huawei and will “aggressively” crack down on any bid to disobey the intent of the curb, Commerce Secretary Wilbur Ross said on Tuesday.


The rule, released in May, expands U.S. authority to require licenses for shipments of some foreign-made chips to the telecoms equipment giant. It was drafted after China hardliners in the administration became frustrated that Huawei’s blacklisting last year by the United States over national security concerns did not go far enough to cut off its access to global supplies.

But industry lawyers and some lawmakers see the rule as overly complex, unclear and riddled with gaps that some allege leave key transactions beyond the purview of the controls.

“The Department of Commerce does not see any loopholes in this rule,” Ross said in a statement to Reuters. “We reaffirm that we will implement the rule aggressively and pursue any attempt to evade its intent.”

The statement comes after Reuters reported that the Commerce Department sent a letter to some semiconductor designers and producers this month to shed more light on the rule. But industry lawyers said the guidance provided little clarity.

The “Department of Commerce would like to alert you to a recent amendment to the U.S. Export Administration Regulations ... that may affect business that you may conduct with the HiSilicon, Huawei Technologies, and other Huawei affiliates,” Matthew Borman, a Commerce Department official, wrote in the letter dated June 16.

Commerce declined to comment on the letter.

HiSilicon is the chip arm of Huawei, whose placement on a U.S. blacklist last year forced some suppliers to seek licenses before shipping to it.

The United States alleges that the Chinese government could use Huawei’s equipment for espionage, which Huawei denies.

Read here

Tags Donald Trump United States Chip Sales China Telecom Security

Neha Pandey

Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.

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