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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
