US sanctions prevent Huawei from accessing tech and manufacturing

The US sanctions would prevent the tech giant from having access to computer chips and other technology. Recent reports confirmed that the Commerce Department added 38 Huawei affiliates around the world to the “entity list”.

US sanctions: What you need to know

US claim: Huawei ‘undermines US national security’

The US Commerce Department claims that the Huawei was using international subsidiaries to circumvent Trump’s ban and bypass the ban on the export of US-based technology.

Commerce Secretary Wilbur Ross said the tech giant and its affiliates “have worked through third parties to harness US technology in a manner that undermines US national security and foreign policy interests.”

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

Allegedly ‘circumventing US export controls’

The new sanctions will prevent Huawei’s attempt to circumvent the administration’s export controls” as it believes that Huawei poses a security risk due to the tech giant’s links to the Beijing government.

The mobile manufacturing giant denies this claim.

In addition, a source at the Commerce Department told Reuters that they are “covering off-the-shelf designs that Huawei may be seeking to purchase from a third-party design house.”

The tech giant would furthermore be forced to stop producing its high-end Kirin chipsets from September 2020; due to pressure the United States administration is placing on Huawei’s suppliers.

‘Huge loss’ for Huawei

Head of consumer business, Richard Yu, confirmed that it would be a “huge loss” for the company if it cannot continue to produce the AI-powered chips, which is manufactured by TSMC using some US technology.

Speaking on Fox News Monday, President Trump claimed that Huawei “comes out and they spy on our country; this is very intricate stuff, you have microchips, you have things that you can’t even see.”

The Trump administration also banned them from 5G wireless networks in the United States and has pressurised allies to do the same.

US-China trade war

This follows after President Trump added several companies – including Huawei – to the Entity List back in May 2019. American companies were forced to cut ties with suppliers and businesses on the Entity List.

This forced Google to cancel Huawei’s Android licence. The tech giant was forced to create their own mobile operating service – HMS, short for Huawei Mobile Services – and its own version of the Google Play store.

Moreover, all Huawei phones released after May 2019 did not support apps from the Google Play store. Read more here: Google revokes their Android licence amid the US-China trade war.

Back in May, the Chinese government said it would “firmly uphold Chinese firms’ legitimate and legal rights and interests”. Lastly, the Ministry of Foreign Affairs added:

“We urge the US side to immediately stop its unreasonable suppression of Huawei and Chinese enterprises.”

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