US takes another step to block HUAWEI’s global chip supply, China warns of retaliation

The US government extended the HUAWEI trade ban for another year earlier this week. Now, the US Commerce Department has announced plans to block HUAWEI’s access to global semiconductor shipments, both via bulk purchase route and acquisition. The department’s latest order states that HUAWEI is violating the foreign policy purposes of the Entity List by using US technology and moving the production overseas.

The Bureau of Industry and Security (BIS), on behalf of the commerce department, plans to “strategically target Huawei’s acquisition of semiconductors that are the direct product of certain U.S. software and technology.” The main goal is to prevent HUAWEI from using solutions provided by US-based companies to design and manufacture semiconductors abroad. 

Following the move, China has warned of serious retaliatory measures, which involve putting US companies on its own “unreliable entities” list. As per a Global Times report, China will impose restrictions and will also launch investigations into major US-based companies such as Apple, Qualcomm, Cisco.

Source: U.S. Department of Commerce