Sept 6 (Reuters) – The U.S. Commerce Department ought to finish all know-how exports to Huawei and China’s prime semiconductor agency following the invention of latest chips in Huawei telephones which will violate commerce restrictions, the chair of the House of Representatives’ committee on China stated on Wednesday.

The feedback from Representative Mike Gallagher, an influential Republican lawmaker whose choose committee has pressed the Biden administration to take a more durable stance on sending U.S. know-how to China, come after Chinese electronics big Huawei (HWT.UL) final week began promoting a telephone referred to as the Mate 60 Pro. The telephone accommodates a chip that analysts consider was made with a technology breakthrough by Semiconductor International Manufacturing Corp (SMIC) (0981.HK).

“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 stated in a press release. “The time has come to end all U.S. technology exports to both Huawei and SMIC to make clear any firm that flouts U.S. law and undermines our national security will be cut off from our technology.”

Huawei was positioned on a commerce blacklist in May 2019 over nationwide safety issues, forcing its U.S. suppliers and others to acquire a particular license to ship items to it. SMIC was added to the so-called entity checklist in December 2020, over fears it might divert superior know-how to navy customers.

The commerce restrictions imposed on Huawei and SMIC embrace the Foreign Direct Product Rule meant to bar any firm anyplace on the earth from utilizing instruments from the United States to fabricate a chip for Huawei.

But suppliers to Huawei and SMIC have obtained billions of dollars’ worth of licenses to promote U.S. know-how to the businesses regardless of their being on the commerce lists, Reuters has beforehand reported. About 90% of the licenses had been for gross sales to SMIC.

The U.S. Commerce Department’s bureau overseeing export controls didn’t instantly reply to a request for remark.

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