The U.S. Commerce Department yesterday piled on even more draconian restrictions on the ability of Chinese telecommunications company Huawei to obtain any electronic components “developed or produced using U.S. technology” anywhere in the world.
This British imperial-style policy, like the wild extension of sanctions imposed on other countries and foreign companies which trade with countries designated “adversaries” or “malign actors,” hit world trade generally. Companies in U.S. allies such as Korea and Japan, which make a good percentage of their revenues from selling components to Huawei, are scrambling now, Samsung and Sony, among them.
Commerce expanded restrictions imposed in May to require foreign-based suppliers seeking to sell components to Huawei and its affiliates anywhere in the world to apply for “special licenses” (mostly not granted), “where U.S. software or technology is the basis for a foreign-produced item that will be incorporated into, or will be used in the `production’ or `development’ of any `part,’ `component,’ or `equipment’ produced, purchased, or ordered by any Huawei entity” on the Commerce Department’s blacklist. Thirty-eight Huawei affiliates in 21 countries were also added to the blacklist.
