A new provision in the National Defense Authorization Act aims to make it nearly impossible for Defense Department contractors to sell semiconductor technology, equipment, or tools to Huawei and its partners. This legislation reflects the US’s escalating efforts to curb China’s technological advancements and protect national security.
The provision, introduced in Congress this weekend, is considered a “must-pass” before lawmakers adjourn for the year. If passed, it would force chip companies to choose between working with Huawei or losing access to lucrative Pentagon contracts, which are valued at approximately $460 billion for fiscal 2023. The bill is part of broader US efforts to prevent China from advancing in critical technology sectors.
Earlier this year, the US government took further steps to isolate Huawei by revoking licenses for major companies like Qualcomm and Intel to sell chips to the Chinese telecom giant. The new bill would intensify these restrictions, making it harder for Huawei to obtain the advanced semiconductor technologies it relies on for its products.
The proposed restrictions are to be put into practice 270 days after the bill is passed and signed into law, less any action by Congress. This escalates the attitude of the US toward China focused on limiting Huawei’s domination in the world of technologies.
If successful, the legislation will deepen Huawei’s technological challenges, significantly limiting its access to key semiconductor technologies needed for future growth. For US lawmakers, the legislation is seen as an essential step in limiting China’s access to critical technologies that could be used for national security purposes.
As the bill progresses, the international technology business will monitor it for future effects on global technology supply chain potential and cooperation.
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