U.S. Commerce Department bans Huawei from accessing American technology The US Commerce Department has tightened rules to ban Huawei from using US \u00a0technology 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\u00a0Huawei, 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 \u201cwhere U.S. software or technology is the basis for a foreign-produced item.\u201d 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\u2019s 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. \u201cAs we have restricted 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\u2019s ability to do so\u201d said US Commerce Secretary Wilbur Ross. \u201cThese actions, effective immediately, prevent Huawei\u2019s attempts to circumvent US export controls to obtain electronic components developed or produced using US technology,\u201d 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 Huawei Cloud Computing TechnologyHuawei Cloud BeijingHuawei Cloud DalianHuawei Cloud GuangzhouHuawei Cloud GuiyangHuawei Cloud Hong KongHuawei Cloud ShanghaiHuawei Cloud ShenzhenHuawei OpenLab SuzhouWulanchabu Huawei Cloud Computing TechnologyHuawei Cloud ArgentinaHuawei Cloud BrazilHuawei Cloud ChileHuawei OpenLab CairoHuawei Cloud FranceHuawei OpenLab ParisHuawei Cloud BerlinHuawei OpenLab MunichHuawei Technologies Dusseldorf GmbHHuawei OpenLab DelhiToga NetworksHuawei Cloud MexicoHuawei OpenLab Mexico CityHuawei Technologies MoroccoHuawei Cloud NetherlandsHuawei Cloud PeruHuawei Cloud RussiaHuawei OpenLab MoscowHuawei Cloud SingaporeHuawei OpenLab SingaporeHuawei Cloud South AfricaHuawei OpenLab JohannesburgHuawei Cloud SwitzerlandHuawei Cloud ThailandHuawei OpenLab BangkokHuawei OpenLab IstanbulHuawei OpenLab DubaiHuawei 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. \u00a0It 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\u2019s 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\u2019s 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.