Representative Mike Gallagher has called on the U.S. Commerce Department to halt technology exports to Huawei and SMIC following the discovery of chips in Huawei phones that could contravene trade restrictions.
Gallagher, chair of the House of Representatives committee on China, emphasized that this chip likely relies on U.S. technology. He raised concerns about Semiconductor International Manufacturing Corp.'s (SMIC) compliance with the Department of Commerce's Foreign Direct Product Rule.
In response to these developments, Gallagher firmly stated that the time has come to cease all U.S. technology exports to Huawei and SMIC. This action aims to send a resolute message that any company disregarding U.S. law and undermining national security will face severed technology ties.
Analysts have found that the Mate 60 Pro, a phone released by Huawei last week, contains a chip believed to be the result of a significant technological achievement by SMIC. The urgency to safeguard national security and meticulously enforce trade restrictions underscores the imperative for immediate action to curtail technology exports to Huawei and SMIC.
Huawei's addition to the trade blocklist in 2019 due to national security concerns necessitated special licenses for its U.S. suppliers and others to continue shipments. SMIC, too, was added to the entity list in December 2020 to prevent the potential diversion of advanced technology for military purposes.
Trade restrictions, including the Foreign Direct Product Rule, were imposed to prevent any global company from employing U.S. tools to manufacture chips for Huawei. However, despite being on trade lists, suppliers to Huawei and SMIC have obtained licenses worth billions of dollars to sell U.S. technology. Notably, around 90% of these licenses were for sale to SMIC.
The U.S. Commerce Department's bureau overseeing export controls has not responded to requests for comment on this matter.
Photo: Doruk Bayram/Unsplash


Australian Scandium Project Backed by Richard Friedland Poised to Support U.S. Critical Minerals Stockpile
Panama Supreme Court Voids Hong Kong Firm’s Panama Canal Port Contracts Over Constitutional Violations
Nvidia, ByteDance, and the U.S.-China AI Chip Standoff Over H200 Exports
SpaceX Pushes for Early Stock Index Inclusion Ahead of Potential Record-Breaking IPO
Nvidia Nears $20 Billion OpenAI Investment as AI Funding Race Intensifies
Anthropic Eyes $350 Billion Valuation as AI Funding and Share Sale Accelerate
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure
Court Allows Expert Testimony Linking Johnson & Johnson Talc Products to Ovarian Cancer
SpaceX Updates Starlink Privacy Policy to Allow AI Training as xAI Merger Talks and IPO Loom
Alphabet’s Massive AI Spending Surge Signals Confidence in Google’s Growth Engine
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran
Amazon Stock Rebounds After Earnings as $200B Capex Plan Sparks AI Spending Debate
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility
OpenAI Expands Enterprise AI Strategy With Major Hiring Push Ahead of New Business Offering
New York Judge Orders Redrawing of GOP-Held Congressional District
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 



