Huawei faces another blow from the US: Export restrictions are tightened

The US Department of Commerce has announced further tightening of export restrictions on Chinese tech giant Huawei. The move comes amid ongoing tensions between the US and China over national security and technological dominance.

The new regulations effectively bar US chipmakers such as Intel and Qualcomm from selling any products to Huawei. This includes revoking previously granted licenses to export non-5G chips to Huawei, a provision with previously undisclosed specifics. This decision follows the recent launch of Huawei’s MateBook X laptop with an Intel processor.

The US is tightening restrictions on sales of Huawei chips, citing national security concerns

The US government has long expressed concern about Huawei’s ties to the Chinese government, citing potential national security risks. Those concerns led to the initial ban on Huawei in 2019, limiting access to US technology such as 5G chipsets, modem chips and Google services.

Previously, major US companies such as Intel and Qualcomm were granted licenses to supply Huawei with certain products other than 5G technology. However, these licenses require regular renewal. Recent actions by the Commerce Department indicate a shift in US policy, with the decision not to renew these licenses effectively cutting off Huawei’s access to American-made chips altogether.

Huawei has yet to comment on the latest US restrictions. The company it previously suffered significant losses due to the initial ban and this new development is likely to further strain its operations. Moving forward, Huawei will likely be forced to rely on processors developed by local partner SMIC or alternative vendors such as MediaTek to support production.

The Chinese government condemned the US actions, accusing it of “economic harassment”. They argue that these moves against Chinese tech firms are unacceptable and create an unfair advantage for American companies.

The latest restrictions on Huawei chip sales are expected to have a significant impact on the global technology industry. Analysts predict potential supply chain disruptions and potential price increases for consumers as Huawei looks for alternative sources of chips. Moreover, the move is likely to further escalate tensions between the US and China in the ongoing tech war.