The US Commerce Department should end all technology exports to Huawei Technologies and China’s top semiconductor firm following the discovery of new chips in Huawei phones that may violate trade restrictions, the chair of the House of Representatives’ committee on China said on Wednesday.
“This chip likely could not be produced without US technology and thus SMIC may have violated the Department of Commerce’s Foreign Direct Product Rule,” Gallagher said in a statement. “The time has come to end all US technology exports to both Huawei and SMIC to make clear any firm that flouts US law and undermines our national security will be cut off from our technology.”

Huawei was placed on a trade blacklist in May 2019 over national security concerns, forcing its US suppliers and others to obtain a special licence to ship goods to it. SMIC was added to the so-called entity list in December 2020, over fears it could divert advanced technology to military users.