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. The department said Friday it doesn't expect to issue another temporary general license extension for the Chinese telecom gearmaker 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 won't affect foreign-produced items as long as they're re-exported, exported from abroad or transferred within 120 days from the rule’s effective date. The company didn't comment.