US tries to limit global chip shipments for Huawei

US, WASHINGTON (ORDO NEWS) — The Trump administration on Friday took steps to block global chip shipments for Chinese Huawei Technologies, which could lead to increased tensions between the US and China.

The US Department of Commerce said it was amending one of the export rules by “strategically focusing” on the acquisition of Huawei chips, which are a product of certain US technology and software.

Changing the rules is a blow to Huawei, as well as to Taiwan Semiconductor Manufacturing Co (TSMC), which is one of the largest chip makers for the Huawei HiSilicon division.

Huawei, which needs chips for widely used smartphones and telecommunications equipment, is at the center of the battle for global technological leadership between the United States and China.

The United States is trying to convince the Allies to exclude Huawei equipment from 5G networks, citing the fact that it can be used by China for espionage. Huawei has repeatedly denied the allegations.

In accordance with the change of rules, foreign companies using American equipment for the production of chips will have to obtain an American license before supplying certain chips to Huawei or its divisions.

The rule’s change is designed to “prevent the use of American technology to engage in malicious activities that are contrary to the interests of US national security and foreign policy,” US Secretary of Commerce Wilbur Ross said in a statement, adding that Huawei and its subsidiaries “have stepped up efforts to undermine these restrictions. based on national security. ”

A Chinese telecommunications company was blacklisted by the United States last year.

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