US adds new sanction on Chinese tech giant Huawei

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US adds new sanction on Chinese tech giant Huawei
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The U.S. government is imposing new restrictions on Chinese tech giant Huawei by limiting its ability to use American technology to produce semiconductors abroad.

FILE - In this March 8, 2019, file photo, A logo of Huawei retail shop is seen through a handrail inside a commercial office building in Beijing. The U.S. government is imposing new restrictions on Chinese tech giant Huawei by limiting its ability to use American technology to build its semiconductors. The Commerce Department said Friday, May 15, 2020 the move aims to cut off Huawei’s undermining of existing U.S. sanctions.

Commerce Secretary Wilbur Ross said Friday that Washington wants to prevent Huawei from evading sanctions imposed earlier on its use of American technology to design and produce semiconductors abroad. Under the new rules, foreign semiconductor makers must obtain a U.S. license to ship Huawei-designed semiconductors to the Chinese company that were produced using U.S. technology.

Huawei responded by removing U.S. components from its core products. The company reported global sales rose 18% to $121 billion last year despite the restrictions, though it said smartphone sales suffered after it was blocked from preinstalling music, maps and other services provided by U.S.-based Google.

Kevin Wolf, an attorney at Akin Gump who oversaw export administration at the Commerce Department during the Obama administration, noted the narrow scope of the rules.

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