New sanctions deal 'lethal blow' to Huawei. China decries US bullying
The United States has cut off Huawei's access to vital, advanced computer chips, striking a deadly blow to the Chinese tech champion.
The US Commerce Department announced fresh sanctions that restrict any foreign semiconductor company from selling chips developed or produced using US software or technology to Huawei, without first obtaining a license to do so.
Restrictions announced in May had already limited companies such as Taiwan Semiconductor Manufacturing Company (TSM) from making and supplying Huawei with chips designed by HiSilicon, a subsidiary of the Chinese company. New measures effectively extend that ban to all chip designers, such as Taiwan's MediaTek, whose shares plunged nearly 10%.
It is just the latest sign that President Donald Trump is ramping up pressure on Beijing, as the United States and China battle over who controls the technologies of the future. In the last three weeks, the Trump administration has threatened bans on popular Chinese-owned apps TikTok and WeChat, and signaled that it could soon restrict Alibaba's operations in the United States.
Washington has long alleged, without providing proof, that Huawei products threaten national security because they could be used to spy on Americans. Huawei has repeatedly denied that its gear and products pose a national security risk.
The company did not respond to a request for comment but a senior US executive said Huawei would survive.
Aug. 14, 2020