The United States Department of Commerce imposed additional sanctions on Friday on Chinese technology giant Huawei to limit the company’s ability to purchase semiconductor chips made with American technology.
The trading department said the sanctions will be “narrow and strategic” targeting a loophole used by some companies to circumvent past sanctions by producing semiconductor chips overseas, using American technology, and selling them directly to Huawei. The US sees Huawei as a threat to national security, as the Chinese Communist Party has access to information collected by the company from around the world, although Huawei claims that it has never provided Beijing with its own information.
“Let’s go for the chase: China’s main exports are espionage, and the distinction between the Chinese Communist Party and Chinese private companies like Huawei is imaginary,” said Senator Ben Sasse (R., Neb.). pronunciation praise the sanctions. “Huawei’s supply chain relies on contracts with US companies and the trade department needs to carefully consider how to effectively disrupt our opponent.”
Earlier on Friday, Taiwan Semiconductor Manufacturing Co., the world’s largest semiconductor chip manufacturer, announced it would build a factory in Arizona with 1,600 employees. While the company hopes to gain some influence with the Trump administration, whose new sanctions against Huawei would damage sales, Secretary of State Mike Pompeo praised the decision as a step toward reducing US dependence on Chinese supply chains.
“The US welcomes TSMC’s intention to invest $ 12 billion in the most advanced 5-nanometer semiconductor plant in the world,” Pompeo wrote on Twitter. “This deal strengthens US national security at a time when China is trying to dominate cutting-edge technology and control critical industries.”