The Latest U.S. Blow To China's Huawei Could Knock Out Its Global 5G Plans
The United States put up another major roadblock this month against Huawei, as China's big telecommunications company moves to set up the latest 5G mobile networks worldwide.
On May 19, the Commerce Department issued new export rules to choke off Huawei's access to semiconductor chips it needs to build cellphones and 5G infrastructure.
The new controls ban chipmakers — mostly based in South Korea and Taiwan — from using U.S. machines and software to manufacture semiconductors for Huawei. That closes a loophole that had allowed semiconductor makers to continue to sell components and designs to Huawei as long as they were made outside the U.S.
Analysts say this latest move likely spells a death knell for Huawei's global ambitions by freezing out the Chinese company from fundamental semiconductor technology and by raising the costs for hundreds of countries that were relying on Huawei components for their 5G expansion plans, including many in Europe. The
