The Trump administration has increased the pressure on Huawei by tightening export controls on the Chinese telecoms group and its suppliers, heightening tensions with Beijing that have flared during the coronavirus pandemic, reported the Financial Times.
The US commerce department accused Huawei of continuing to use American technology in its semiconductor designs, despite having been subject to export controls since May 2019.
The move to close loopholes in those controls came at the end of a week in which the Trump administration prevented a government pension fund from investing in Chinese stocks and President Donald Trump suggested the US could “cut off the whole relationship” with China.
The new rule prevents any company from selling to Huawei without a license if the product they are selling has been designed or made using US-produced technology or hardware. The original restrictions required companies to secure a license before selling US-made equipment to Huawei. But they did not stop manufacturers from being able to sell to the Chinese company if the material was made abroad.