Trump bars Huawei from U.S. technology

The Trump administration issued new rules Friday that will bar Huawei and its suppliers from using U.S. technology and software, a significant escalation in its battle with the Chinese telecom giant and one that will likely inflame tensions with Beijing.

The rule changes will prevent companies from selling chips to Huawei that are made with U.S. manufacturing equipment or based on designs that are the product of U.S. software and technology, the Commerce Department said. Companies can apply for a license to continue supplying products to Huawei, but the administration said the presumption will be to deny those requests.

The move seemed aimed at inflicting further damage on Huawei, which continues to rely on U.S.-made machinery and software designs to make the chips for its smartphones and tablets, as well as the companies that supply it. The Trump administration has singled out Huawei as a threat to national security, saying its gear should not be trusted because it is beholden to the Chinese government, an accusation the company has denied.

The measure comes on top of several restrictions taken against Huawei in the past year. The administration added the Chinese telecom giant to an “entity list” last May, barring exports of U.S. products to Huawei and 114 of its affiliates unless suppliers had first obtained a license.

In a statement Friday, the Commerce Department said Huawei had tried to “undermine” its previous restrictions by using U.S. software and technology to make its own semiconductors and purchasing products from foreign foundries that use U.S. equipment.