On Thursday, a group of prominent Republicans in the United States House of Representatives encouraged the administration of Vice President Joe Biden to take stricter action against the Chinese company Huawei [RIC:RIC: HWT.UL] and Semiconductor Manufacturing International Corp (SMIC) (0981. HK). This came after rumors revealed that Huawei had built an advanced smartphone capable of supporting 5G.
The lawmakers, including the chairs of the House of Representatives Foreign Affairs, Energy and Commerce, Armed Services, and select China committees, urged the Commerce Department to stop granting licenses to Chinese government-controlled companies, such as SMIC, and said it called for additional pressure from the United States “and more effective export controls on our adversaries.” SMIC is an example of one of the companies that would be affected by this change in policy.
In addition, the letter urged the administration to “strategically bar the import of SMIC-produced semiconductors, particularly those that pose risks to national security, into the United States” and to “pursue criminal charges against executives from SMIC and Huawei.” The letter was attached to a petition sent to the Department of Homeland Security.
