| 15 September 2023
| Christie Anto
Washington D.C., U.S.A - In a bid to tighten the screws on China's tech giants, Republican lawmakers in the United States have rallied for more stringent sanctions against Huawei and Semiconductor Manufacturing International Corporation (SMIC). The move comes in response to concerns that these companies have developed an advanced smartphone, the Huawei Mate 60 Pro, seemingly in defiance of U.S. export controls.
A group of ten Republican members of the House of Representatives, including key committee chairs responsible for China, energy and commerce, and defense, have jointly urged the Commerce Department to impose "full blocking sanctions" on Huawei and SMIC, along with pressing for criminal charges against the executives of these firms. Their concerns center on the Huawei Mate 60 Pro's utilization of cutting-edge 7-nanometer chips, which they argue suggest a violation of U.S. export controls.
House Foreign Affairs Committee Chairman Michael McCaul and his nine fellow Republican signatories released a letter last Thursday outlining seven proposed measures, one of which entails the revocation of all existing export licenses granted to Huawei and SMIC. The lawmakers expressed their profound dismay over what they perceive as the Bureau of Industry and Security's (BIS) ineffectiveness in drafting and enforcing export control rules, particularly against Chinese entities.
The letter stated, "We are extremely troubled and perplexed about the Bureau of Industry and Security’s [BIS] inability to effectively write and enforce export control rules against violators, especially China. For more than two years, our committees and numerous members of Congress have written you regarding loopholes in BIS rules attempting, unsuccessfully, to restrict technology to Huawei and SMIC, among others. Despite this knowledge and continued Congressional pressure to adopt stricter policies, BIS has continued to grant licenses to Chinese Communist Party [CCP] controlled companies, such as SMIC, worth hundreds of billions of dollars."
Huawei and SMIC have yet to respond to requests for comment on these recent developments.
The United States placed Huawei and SMIC on a trade blacklist in 2019 and 2020, respectively, citing national security concerns. This move effectively necessitated special licenses for U.S. suppliers to conduct business with these companies.
The revelation of the Huawei Mate 60 Pro, unveiled just last month during U.S. Commerce Secretary Gina Raimondo's visit to China, has set off alarm bells in Washington. The smartphone boasts an advanced processor capable of supporting 5G technology, prompting questions about the efficacy of President Joe Biden's campaign to curb China's progress in developing advanced semiconductor technology. Earlier this month, Republican Mike Gallagher, chair of the House committee on China, called for a complete halt to all technology exports to Huawei and SMIC.
Responding to the mounting concerns, the Commerce Department has announced that it is evaluating the capabilities of the new chip. In a recent statement, it emphasized, "Let’s be clear: Export controls are just one tool in the U.S. government’s toolbox to address the national security threats presented by the PRC," referring to the People's Republic of China.
As tensions continue to escalate on the technological front, the fate of Huawei, SMIC, and their place in the global tech ecosystem hangs in the balance. The latest calls for stricter sanctions underscore the ongoing challenges facing the Biden administration in navigating the complex landscape of U.S.-China relations, particularly in the realm of technology and national security.
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