The US government extended HUAWEI's trade ban for another year earlier this week. The U.S. Department of Commerce has now announced plans to block HUAWEI's access to global semiconductor supplies through both bulk purchases and acquisitions. The department's latest order says that HUAWEI violates the foreign policy objectives of the entity list by using US technology and relocating production overseas.
The Bureau of Industry and Security (BIS), on behalf of the retail department, plans to "strategically align Huawei's acquisition of semiconductors that are the direct product of certain U.S. software and technology." The main goal is to prevent HUAWEI from using solutions from US companies for the development and production of semiconductors abroad.
After the move, China warned of severe retaliation that would place US companies on the list of "unreliable companies". According to a report by the Global Times China will impose restrictions and also open investigations against large US companies such as Apple, Qualcomm and Cisco.
Source: U.S. Department of Commerce