Fresh sanctions by US deals ‘lethal blow’ to Chinese company Huawei

New Delhi: The United States Administration has expanded sanctions on the Chinese company Huawei, which are aimed at further restricting the tech giant’s access to computer chips and other technologies.

The US Commerce Department has blacklisted 38 Huawei subsidiaries around the world, saying the company is using international subsidiaries to circumvent sanctions that prevent technology exports from the US.

Commerce Secretary Wilbur Ross said, Huawei and its affiliates have worked through third parties to harness US technology in a manner that undermines US national security and foreign policy interests.

The tightening of sanctions comes amid escalating tensions between the US and China and Washington’s claims that Chinese firms are being used for espionage, despite repeated denials.

Secretary of State Mike Pompeo said the new sanctions were imposed to protect US national security, our citizens’ privacy and the integrity of our 5G infrastructure from Beijing’s malign influence.

Implications on Huawei after US sanctions

The US maintains that Huawei’s technology could be used by the Chinese government and has pressured governments around the world – including the UK – to cut ties with the company, calling it a national security threat.

Huawei didn’t respond immediately, however its executives have previous described it as arbitrary and pernicious, warning that this would have collateral impact on businesses.

Washington said that no company worldwide would be allowed to sell semiconductors made using US software or equipment without a licence if Huawei was involved at any stage of the transaction.

After US imposing sanctions against Huawei, some said this could mean “death” for the company.