World Wide Web reported the latest news from the Russian Satellite News Agency. On August 17, local time, the US Department of Commerce further tightened restrictions on Huawei’s access to US technology, and at the same time included Huawei’s 38 subsidiaries in 21 countries in the “Entity List”.
The official website of the US State Department stated that the US Department of Commerce has expanded its foreign direct product rules, which will prevent Huawei from circumventing US laws by “alternative chip production” and “providing off-the-shelf chips produced with tools obtained from the United States”.
In this ban, the US Department of Commerce has added several new rules. For example, products based on US software and technology cannot be used to manufacture or develop any parts, components or equipment produced, purchased or ordered by any Huawei subsidiary (in the entity list). In addition, the regulation also restricts Huawei in the entity list from participating in relevant transactions as a “buyer”, “intermediate consignee”, “ultimate consignee” or “end user”, provided that permission is required.
The Bureau of Industry and Security (BIS) of the Ministry of Commerce announced today that it will further restrict Huawei Technologies (Huawei) and its non-US affiliates on the entity list from obtaining items produced at home and abroad using US technology and software. In addition, BIS added 38 Huawei affiliates to the list of entities, implemented licensing requirements for all projects subject to the Export Administration Regulations (EAR), and revised 4 existing Huawei entity list entries. BIS also imposes license requirements on any transactions involving a party on the entity list that are subject to the export control of the Ministry of Commerce, such as Huawei (or an entity on the entity list) as the purchaser, intermediary or end user. These actions take effect immediately to prevent Huawei from trying to circumvent US export controls to obtain electronic components developed or produced using US technology.
In May 2020, BIS revised the long-standing foreign direct production product (FDP) rules to target Huawei’s acquisition of certain US software and technology direct product semiconductors. The present amendment further improves the FDP rules and applies the controls to the following transactions. 1) U.S. software or technology is the basis of a foreign-produced project. The project will be included in or used to “produce” or “develop” any “component”, “component” or “equipment” by any Huawei entity on the list of entities, production, purchase or order; 2) Any Huawei entity on the entity list is a party to such a transaction, such as the “purchaser”, “intermediate consignee”, “ultimate consignee” or “end user”.
It is reported that the amendment further restricts Huawei’s access to foreign-made chips developed or produced by American software or technology to the same extent as similar American chips.
