The U.S. government wants to put Huawei more under pressure. After tightening sanctions, it will be more difficult for the Chinese company to design its own chips and find manufacturers for them. But there could also be a loophole.
The new measures are intended to specifically cut access to American technology for the smartphone provider and network equipment supplier. It is both about the development and the production of the chips, said a senior official of the US Department of Commerce on Friday. Since the blockade was introduced in May 2019, Huawei has increasingly used its own processors, but continues to use US technologies, the Ministry of Commerce justified the tightening.
Espionage And The Violation Of Sanctions
Huawei is the leading supplier of mobile networks and the second largest smartphone provider in the world. The United States accuses the group of espionage and the violation of sanctions. Huawei has therefore been blacklisted by companies that American companies can only do business with special permission from the U.S. authorities. For this reason, the mobile communications group cannot sell new smartphone models with pre-installed Google services, which slows down sales of the devices outside of the Chinese home market. The group rejects the US allegations.
The exemptions for American mobile operators from the sanctions imposed a year ago were extended on Friday for another three months. Shortly before the Department of Commerce’s new regulations were announced, it was announced the construction of a chip factory in the United States. The chip maker, which among other things produces processors for Apple’s iPhones, wants to start construction work next year.
Huawei was still able to eradicate the missing Google software. If the Chinese company is cut off from the smartphone processors, it will be difficult.