US sanctions still grant Huawei access to chip-making equipment on a case-by-case basis
- There is criticism of US sanctions that limit China’s access to semiconductors
- Huawei and its partners are all subject to different regulations
- Letter calls for documents to be preserved for Trump’s analysis
Despite very public efforts to limit China’s access to advanced semiconductors and chip-making equipment, a leading House Republican has accused the Biden administration of leaving loopholes that benefit companies like Huawei .
The concerns come from none other than Rep. John Moolenaar, chairman of the chamber’s China Select Committee, who expressed his concerns in a letter to Commerce Secretary Gina Raimondo.
Moolenaar acknowledged that some restrictions, such as limits on high-bandwidth memory chips, have been largely successful, and argued that other measures have created opportunities for Chinese companies to circumvent U.S. sanctions, rendering them ineffective.
US restrictions against China are considered ineffective
Moolenaar highlighted rules that impose varying restrictions on different production facilities of Huawei’s chip manufacturing partner, Semiconductor Manufacturing International Corp (SMIC).
He criticized the licensing policy that allows “case-by-case” sales to some SMIC facilities in Shanghai despite denying other shipments to the Beijing facilities, and questioned why some Huawei-affiliated companies such as Shenzhen Pensun Technology Co and SwaySure are subject to less stringent policies. for others, such as Qingdao Si’En.
An extract from the letter (via Bloomberg) reads: “There is no national security justification for these loopholes.” All of this, he says, “raises real questions about the culture at (the Commerce Department’s Bureau of Industry and Security) and why BIS continues to facilitate the shipment of U.S. technology.”
Moolenaar has been instrumental in US efforts to limit China’s access to advanced technologies. He and Representative Raja Krishnamoorthi were the driving force behind adding many of the newest companies to the so-called Entity List, which was announced earlier this week.
In his letter to Raimondo, Moolenaar asks the Commerce Department to preserve “all documents and communications” related to the restrictions so that newly-elected US President Donald Trump can “properly identify other loopholes.”
A Commerce spokesperson confirmed receipt of the letter, adding that it will “respond through the appropriate channels.”