On Monday, the U.S. BIS (Bureau of Industry and Security) within the Department of Commerce announced that it will further restrict Huawei from accessing U.S. chips. According to the press release, Huawei has succeeded in banning the purchase of American components through third-party companies.
The U.S. Department of Commerce will ban 38 companies, all of which are directly affiliated with Huawei across 21 countries, that were used to circumvent the U.S. ban that extended the Trump administration until May 2021, according to the BIS.
As we have limited [Huawei’s] access to US technology, Huawei and its affiliates have worked through third parties to exploit US technology in a way that undermines US national security and interests in foreign policy. This multilingual action demonstrates our continued commitment to hindering Huawei’s capabilities. – U.S. Purchasing Secretary Wilbur Ross
The said subsidiary companies are all subsidiaries of Huawei operating outside China, including design and Huawei Cloud centers, as well as some of their R&D centers throughout Europe.
Everything in the press release was meant to prevent Huawei from doing business with the American tech companies. In fear that the “Chinese Communist Party” will direct Huawei to enforce a settlement against U.S. officials as well as U.S. citizens.
According to APNews Earlier this month, it was announced by a Huawei executive that the Chinese telecom giant will suspend processor chips and will eventually have to halt production of its high-end Kirin processors. Maybe May 2021 will bring better news for Huawei.
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