Huawei calls move to curb chips supply 'arbitrary', expects business impact

published 18.05.2020 19:05

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Guo said that Huawei spent $18.7 billion buying from U.S. suppliers last year and would continue to buy from them if the U.S. government would allow it.

“Huawei categorically opposes the amendments made by the U.S. Department of Commerce to its foreign direct product rule that target Huawei specifically,” it said in a statement, adding that Washington adding it to the entity list a year ago was also without justification.

The company was added to the Commerce Department’s “entity list” a year ago due to national security concerns, amid accusations from Washington that it violated U.S. sanctions on Iran and can spy on customers.

Friday’s move by the U.S. Commerce Department expands U.S. authority to require licences for sales to Huawei of semiconductors made abroad with U.S. technology, vastly extending its reach to halt sales to the world’s No. 2 smartphone maker.

It said Huawei has since remained committed to complying with all U.S. government rules and regulations, but despite its efforts, the U.S. government has decided to proceed and completely ignore the concerns of many companies and industry associations.