Commerce Increases Restrictions on Huawei, Issues Last 'Expected' General License Renewal

The Commerce Department announced increased restrictions on foreign-made chips exported to, and made by, Huawei and its affiliates, and said it does not expect to issue another temporary general license extension for the Chinese technology company after its latest 90-day renewal expires Aug. 13.

The agency is amending the direct product rule to apply restrictions to foreign-produced semiconductor designs and items, such as chipsets, that are direct products of controlled U.S. software and technology, and will require a license when the exporter has “knowledge” that the item’s destination is Huawei.

To mitigate impact on the industry, Commerce said the rule change will not impact foreign-produced items as long as they are reexported, exported from abroad or transferred within 120 days from the rule’s effective date. The rule is expected to be issued as an interim final rule Friday afternoon, a senior Commerce official told reporters on a conference call.