The Trump administration said restrictions on Huawei Technologies Co announced this week will take effect Friday, placing China\u2019s largest technology company and scores of its affiliates around the world on a blacklist that curtails its access to critical US suppliers.<\/p>\n
In a Federal Register notice released on Thursday, the Commerce Department said the curbs, apply to Huawei and 67 of its affiliates scattered across 26 countries from Germany to Madagascar.<\/p>\n
They were mainly private subsidiaries that the networking giant owns and uses to trade or conduct business in different cities or countries, and hence prime targets should the White House decide to pursue export restrictions.<\/p>\n
The Trump administration is pulling out the big guns in its push to slow China\u2019s rise, with potentially devastating consequences for the rest of the world.<\/p>\n
If the US blocks the sale to Huawei of critical components such as semiconductors, it could cripple Huawei\u2019s businesses, depress the business of American chip giants from Qualcomm Inc. to Micron Technology Inc, and potentially disrupt the rollout of critical 5G wireless networks around the world.<\/p>\n
The Commerce Department said Wednesday it will soon put Huawei on an \u201cEntity List\u201d – meaning any US company will need a special license to sell products to the world\u2019s largest networking gear maker and second-largest smartphone brand.<\/p>\n
Commerce Secretary Wilbur Ross told Bloomberg Television the measures limiting its access to US components become official on Friday.<\/p>\n
Separately, he said President Donald Trump had given his department 150 days to establish a process to screen US companies\u2019 purchases of equipment from the Chinese firm, and other equipment providers with which officials have concerns.<\/p>\n
The threat is likely to elevate fears in Beijing that Trump\u2019s broader goal is to contain China, igniting a protracted cold war between the world\u2019s biggest economies. In addition to a trade fight that has rattled global markets for months, the US has pressured both allies and foes to avoid using Huawei for 5G networks that will form the backbone of the modern economy.<\/p>\n
Ross dodged questions about whether the new moves against Huawei could lead to a negotiation with the company or the Chinese government.<\/p>\n
He insisted the growing campaign against Huawei remained a separate matter from broader trade negotiations between the US and China, which have stalled in recent days.<\/p>\n
\u201cThe purpose we have in mind here is we think there is a significant danger to national security and to our foreign policy of the existing situation at Huawei,\u2019\u2019 Ross said.<\/p>\n
In notice published Thursday, the Commerce Department\u2019s Bureau of Industry and Security said the US was adding Huawei\u2019s affiliated companies around the world because they \u201cpose a significant risk of involvement in activities contrary to the national security or foreign policy interests of the United States.\u2019\u2019<\/p>\n
\u201cThis decision is in no one\u2019s interest,\u201d Huawei said in a statement on Thursday. \u201cIt will do significant economic harm to the American companies with which Huawei does business, affect tens of thousands of American jobs, and disrupt the current collaboration and mutual trust that exist on the global supply chain.\u201d<\/p>\n
The US has long accused the telecommunications equipment giant of facilitating Chinese espionage and sought to convince allies not to purchase its equipment for new 5G networks. The Justice Department is prosecuting Huawei over accusations of bank fraud, technology theft and violating U.S. sanctions against Iran.<\/p>\n
Huawei\u2019s chief financial officer Meng Wanzhou, the daughter of its founder, was detained in Canada in December at the request of the US, which seeks her extradition over allegations of violating Iran sanctions. Huawei has denied any wrongdoing and sued the US separately for a ban on American government entities from purchasing its equipment.<\/p>\n
Teresa He, president of Huawei\u2019s chip-making unit HiSilicon, called the U.S. ban \u201ccrazy\u201d and \u201cgroundless\u201d in a letter sent to employees and seen by Bloomberg. While HiSilicon was seen as a backup plan for Huawei\u2019s semiconductor supply, the ban will make it a primary supplier, she said in her letter.<\/p>\n