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AskCyber Home » News » News » Huawei Trade Ban Heats Up

Huawei Trade Ban Heats Up

2020-08-18 by Michelle Dvorak

Huawei Phone

U.S. Commerce Department bans Huawei from accessing American technology

The US Commerce Department has tightened rules to ban Huawei from using US  technology in their products. The original regulation went into effect in May 2019, but the rules still allowed third-parties to sell US chip technology to Huawei.

When the US Commerce Department banned the export of U.S. technology to Huawei, it was intended that no chip manufacturer could use American technology for chips designed by Huawei. However, there was a reprieve written into the law that still allowed US companies to conduct business with Huawei and send security patches and updates. But that reprieve expired on August 13.

Although Huawei chip manufacturing was slowed due to the trade rules, some semiconductor companies saw an increase in business. For example, Taiwan Semiconductor Manufacturing Co, the biggest contract chip producer, and other third-party vendors used a loophole in the wording to continue to sell US technology to Huawei.

HP Computers

The Commerce Department has now changed the language of the rules to include “where U.S. software or technology is the basis for a foreign-produced item.” That means no intermediary supplier, like Taiwan Semiconductor, can buy American technology for use by Huawei.

READ: US Says Huawei Using Backdoors on Mobile Phone Networks

It’s Complicated

Chip manufacturing is complicated and involves many companies. The process uses technology from a number of companies to produce chipsets that go into smartphones, computers, and other electronic devices.

Huawei designs their own chips but lacks the ability to manufacture them.

“As we have restricted [Huawei’s] access to U.S. technology, Huawei and its affiliates have worked through third parties to harness U.S. technology in a manner that undermines U.S. national security and foreign policy interests. This multi-pronged action demonstrates our continuing commitment to impeding Huawei’s ability to do so” said US Commerce Secretary Wilbur Ross.

“These actions, effective immediately, prevent Huawei’s attempts to circumvent US export controls to obtain electronic components developed or produced using US technology,” the statement said.

This now means that older Huawei devices using US chip technology will no longer receive security updates for hardware or software.

Huawei Affiliates Banned

In a statement published on 17 August, the Bureau of Industry and Security (BIS) in the Department of Commerce added 38 affiliate companies to the entity list. The 38 companies are in 21 countries outside of China and are directly affiliated with Huawei.

Shop Samsung Phones
  1. Huawei Cloud Computing Technology
  2. Huawei Cloud Beijing
  3. Huawei Cloud Dalian
  4. Huawei Cloud Guangzhou
  5. Huawei Cloud Guiyang
  6. Huawei Cloud Hong Kong
  7. Huawei Cloud Shanghai
  8. Huawei Cloud Shenzhen
  9. Huawei OpenLab Suzhou
  10. Wulanchabu Huawei Cloud Computing Technology
  11. Huawei Cloud Argentina
  12. Huawei Cloud Brazil
  13. Huawei Cloud Chile
  14. Huawei OpenLab Cairo
  15. Huawei Cloud France
  16. Huawei OpenLab Paris
  17. Huawei Cloud Berlin
  18. Huawei OpenLab Munich
  19. Huawei Technologies Dusseldorf GmbH
  20. Huawei OpenLab Delhi
  21. Toga Networks
  22. Huawei Cloud Mexico
  23. Huawei OpenLab Mexico City
  24. Huawei Technologies Morocco
  25. Huawei Cloud Netherlands
  26. Huawei Cloud Peru
  27. Huawei Cloud Russia
  28. Huawei OpenLab Moscow
  29. Huawei Cloud Singapore
  30. Huawei OpenLab Singapore
  31. Huawei Cloud South Africa
  32. Huawei OpenLab Johannesburg
  33. Huawei Cloud Switzerland
  34. Huawei Cloud Thailand
  35. Huawei OpenLab Bangkok
  36. Huawei OpenLab Istanbul
  37. Huawei OpenLab Dubai
  38. Huawei Technologies R&D UK

This adds a license requirement for all items subject to the Export Administration Regulations. It also imposes license requirements on any transaction involving items subject to the Commerce export control jurisdiction where a company on the entity list acts as a purchaser, intermediate, or end-user.

What is Huawei?

Huawei Technologies Ltd is a Chinese technology-based in Shenzhen, Guangdong, China. The company designs, develops, and sells telecommunications equipment and consumer electronics.  It is known for its high-end smartphones and Kirin chips. Huawei has an integral role in building 5G network infrastructure.

The United States maintains that the company builds spying capabilities into its networks and has pressured the UK to stop working with them. The feds also claim that Huawei works in collaboration with the Chinese government . The company was identified by the US Permanent Select Committee on Intelligence as a potential security threat.

Ren Zhengfei, the founder of Huawei is a former People’s Liberation Army engineer.

US-China Tensions Rising

Huawei CFO and daughter of its founder Meng was detained in Vancouver, Canada in December 2019 at the behest of the United States

Huawei is not the only Chinese company under fire from US regulators. TikTok, a popular mobile app, produced by ByteDance has come under scrutiny from the United States over unproven data privacy allegations. US President Donald Trump signed an executive order last week giving ByteDance 90 days to divest its US business interests. Microsoft is in talks with ByteDance.

Another executive order written at the same time sanctions Chinese company Tencent. This executive order applies the same divestiture requirements to Tencent’s US business dealings but does not apply to its video games according to the Whitehouse. Tencent is not in the market to sell its business.

Filed Under: News Tagged With: China, Huawei

About Michelle Dvorak

Michelle writes about cyber security, data privacy focusing on social media privacy as well as how to protect your IoT devices. She has worked in internet technology for over 20 years and owns METRONY, LLC. Michelle earned a B.S. in Engineering from Rensselaer Polytechnic Institute. Michelle published a guide to Cyber Security for Business Travelers


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