Huawei avoids sanctions using suppliers, claims US Select Committee

Huawei is avoiding sanctions imposed by the US to import advanced microchips, a US Select Committee has alleged. The committee has claimed Huawei is grabbing US tech through strategic partnerships.

Chinese companies circumventing sanctions

The US government isn’t doing enough to curb Chinese companies from importing microchips and other advanced US tech, claimed the top Republican and Democrat on the House China Select Committee.

The Biden administration must step up efforts to block Huawei Technologies suppliers from buying American chipmaking gear. House China Select Committee Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi reportedly wrote a letter to Commerce Secretary Gina Raimondo voicing their concerns.

In the letter, the House China Select Committee stated certain companies are working with Huawei to help the company avoid sanctions. Raimondo’s agency oversees a pivotal trade restriction list as well as broader export controls on advanced chips and manufacturing tools.

Interestingly, the committee also submitted the names of the companies that might be colluding with Huawei. The committee accused Chinese companies Pengxinxu, SwaySure Technology, Qingdao Si’En, and “potentially many others” of working in Huawei’s “clandestine network.” The committee relied on a Bloomberg report to make these claims.

How is Huawei avoiding US sanctions?

A Commerce Department spokesperson reportedly confirmed they “have received the letter and will respond through the appropriate channels”. It is not immediately clear how the agency would move forward.

The US sanctions primarily intend to prevent China from developing a cutting-edge semiconductor industry. Multiple reports suggest China could be actively militarizing or weaponizing technology.

The US Select Committee indicated that delays in enforcing policies could be one of the reasons why Huawei can avoid sanctions. Delayed processes have allegedly allowed several Chinese companies to stockpile advanced equipment.

Interestingly, US sanctions on China seem to be driving innovation in the country. Huawei’s latest smartphone packs a 7nm chipset. It has been made by Semiconductor Manufacturing International Corp (SMIC), which is the largest contract chip maker in mainland China.