INTRO: The United States government on Monday announced further restrictions on Huawei to stop the Chinese telecom giant from accessing technology produced by US companies.
In addition, the US Bureau of Industry and Security (BIS) added 38 new Huawei affiliates to the Entity List, restricting their businesses with US firms. “These actions, effective immediately, prevent Huawei’s attempts to bypass U.S. export controls to get electronic components developed or produced using U.S. technology”, said the US Department of Commerce in a politician handout.
With the new amendments going into effect, the department will not issue temporary licenses to the corporate to hold on business with US firms. Instead, it’s now issued a limited authorization to Huawei to take care of existing telecom networks that supported its equipment within the US. It leaves out any collaboration between the Chinese tech giant and US tech companies on the buyer front, which confirms recent reports that existing Huawei phones, even relatively new ones, won’t get any longer Android updates within the future.
The US has already been pressuring foreign companies, like Taiwan’s TSMC, to stop doing business with Huawei. The new restrictions further prevent the company from obtaining foreign-made chips developed supported US technology. In a strongly-worded statement, the US State Department accused Huawei of “stealing U.S. technology, conspiracy, wire fraud, bank fraud, racketeering, and helping Iran to evade sanctions, amongst other charges”.
The Taiwanese firm manufactures Huawei’s Kirin chipsets, which power the company’s smartphones and tablets. However, under increasing sanctions by the US, Huawei recently announced plans to prevent manufacturing Kirin chips from next month during a move described by the company’s consumer business CEO, Richard Yu, as “a huge loss for Huawei”.