U.S. Congressman Calls for Halt to Tech Exports to Huawei and SMIC

Rep. Mike Gallagher, the head of the House of Representatives' committee on China, has recently urged the U.S. Commerce Department to stop all technology exports to Huawei and SMIC, China's largest semiconductor company. The discovery of new semiconductors in Huawei phones that may break trade regulations affected this call.

Chip Technology Concerns

A processor in the Mate 60 Pro smartphone, revealed by Huawei, a significant Chinese electronics manufacturer, is thought to have been made using technology from Semiconductor International Manufacturing Corp (SMIC). Analysts assert that this chip could only have been produced using American technology, potentially in violation of the Department of Commerce's Foreign Direct Product Rule.

Call for Strict Export Measures

The need for taking a strong stance was emphasized by Representative Gallagher, who said that "the time has come to end all U.S. technology exports to both Huawei and SMIC to make clear that any company that disobeys U.S. law and poses a threat to our national security will lose access to our technology."

Trade Restrictions on Huawei and SMIC

Since May 2019, when it was added to a trade blacklist because of worries about national security, Huawei has been the subject of scrutiny, to export goods to Huawei, this judgment mandated that U.S. vendors and others get specific licenses. Similarly, SMIC was included on the entity list in December 2020 due to worries that it would divert cutting-edge technology for military use.

The Foreign Direct Product Rule, one of the trade limitations imposed on Huawei and SMIC, forbids any company in the globe from using American tools to produce chips for Huawei. Despite being on the trade lists, Reuters has previously reported that suppliers to these corporations have been granted licenses to sell them U.S. technology worth billions of dollars. Notably, 90% of these licenses were given with the intention of selling them to SMIC.

Challenges and Unanswered Questions

The U.S. Commerce Department's export control division has not yet responded to this plea for a freeze on technology exports. The situation is still complicated, and there are continuous discussions about the need for tighter regulations to protect American technological advancements and national security interests in the face of evolving threats from China's digital titans.