US May Announce New Sanctions Against Huawei: What Could Change

© Robin Sabbadini for Lemon Squeezer

The United States could announce new sanctions against Huawei, in order to further limit the company's ability to manufacture chips. According to a report by Bloomberg, a new bipartisan bill, called the National Defense Authorization Act, was announced a few days ago. And, according to the explanations of the American agency, if this bill is passed, it would prevent all companies working with the Pentagon from selling semiconductors, chip manufacturing equipment or even design tools to Huawei.

Bloomberg also explains that there is a high probability that this project will be adopted by the United States Congress. And if these rules are adopted, companies that violate them would no longer be entitled to contracts with the United States Department of Defense. However, this is a market that weighed 460 billion dollars in 2023. This restriction would apply 270 days after its signature by the President of the United States, if it is adopted by Congress.

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Objective: tighten the noose

Currently, American companies and those that use American technologies are not allowed to do business with Huawei unless they obtain a permit. As a result, the Chinese manufacturer still has the possibility of purchasing certain products that are authorized through licenses issued by Washington. But if the National Defense Authorization Act is passed by Congress, Huawei would find itself in a more difficult situation.

As a reminder, because of the sanctions already in force, Huawei has been unable to offer 5G smartphones. And this has caused a collapse in the manufacturer's market share, even in China. But for the past year, the Chinese manufacturer has been making a comeback, as despite the sanctions, it has finally managed to find a way to offer 5G smartphones.
However, the new sanctions from the United States could hamper Huawei's plans in the smartphone market, but also in other areas, such as artificial intelligence or even electric and autonomous cars.

• According to Bloomberg, a new bill called the National Defense Authorization Act could strengthen US sanctions against Huawei
• In essence, it would prevent companies that work with the Pentagon from selling semiconductor products to Huawei
• The bill comes as Huawei is making a comeback in the smartphone market, despite sanctions

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