Representative Mike Gallagher has called on the U.S. Commerce Department to halt technology exports to Huawei and SMIC following the discovery of chips in Huawei phones that could contravene trade restrictions.
Gallagher, chair of the House of Representatives committee on China, emphasized that this chip likely relies on U.S. technology. He raised concerns about Semiconductor International Manufacturing Corp.'s (SMIC) compliance with the Department of Commerce's Foreign Direct Product Rule.
In response to these developments, Gallagher firmly stated that the time has come to cease all U.S. technology exports to Huawei and SMIC. This action aims to send a resolute message that any company disregarding U.S. law and undermining national security will face severed technology ties.
Analysts have found that the Mate 60 Pro, a phone released by Huawei last week, contains a chip believed to be the result of a significant technological achievement by SMIC. The urgency to safeguard national security and meticulously enforce trade restrictions underscores the imperative for immediate action to curtail technology exports to Huawei and SMIC.
Huawei's addition to the trade blocklist in 2019 due to national security concerns necessitated special licenses for its U.S. suppliers and others to continue shipments. SMIC, too, was added to the entity list in December 2020 to prevent the potential diversion of advanced technology for military purposes.
Trade restrictions, including the Foreign Direct Product Rule, were imposed to prevent any global company from employing U.S. tools to manufacture chips for Huawei. However, despite being on trade lists, suppliers to Huawei and SMIC have obtained licenses worth billions of dollars to sell U.S. technology. Notably, around 90% of these licenses were for sale to SMIC.
The U.S. Commerce Department's bureau overseeing export controls has not responded to requests for comment on this matter.
Photo: Doruk Bayram/Unsplash


FTC Praises Instacart for Ending AI Pricing Tests After $60M Settlement
Saks Global Weighs Chapter 11 Bankruptcy Amid Debt Pressures and Luxury Retail Slowdown
Moore Threads Unveils New GPUs, Fuels Optimism Around China’s AI Chip Ambitions
Oil Prices Hold Steady in Asia as Geopolitical Tensions Support Market
RBA Signals Possible Interest Rate Hike in 2026 as Inflation Pressures Persist
Asian Stock Markets Trade Flat as Holiday Liquidity Thins and BOJ Minutes Watched
Gold Prices Surge to Record Highs as Geopolitical Tensions Fuel Safe-Haven Demand
SUPERFORTUNE Launches AI-Powered Mobile App, Expanding Beyond Web3 Into $392 Billion Metaphysics Market
BP Nears $10 Billion Castrol Stake Sale to Stonepeak
DOJ Releases New Epstein Files Detailing Alleged Trump Flights on Private Jet
Federal Judge Declines to Immediately Halt Trump’s $300 Million White House Ballroom Project
Nvidia and Groq Strike Strategic AI Inference Licensing Deal
Republicans Raise National Security Concerns Over Intel’s Testing of China-Linked Chipmaking Tools
Apple Explores India for iPhone Chip Assembly as Manufacturing Push Accelerates
Tunisia Protests Grow as Opposition Unites Against President Kais Saied’s Rule
Micron Technology Forecasts Surge in Revenue and Earnings on AI-Driven Memory Demand 



