US lawmakers are advancing new restrictions that would significantly impact suppliers to Huawei Technologies, as part of a broader effort to limit China’s access to advanced technologies. A provision in the bipartisan National Defence Authorisation Act (NDAA)—expected to become law—would prohibit the Pentagon from working with companies that supply computer chips, chipmaking equipment, or semiconductor design tools to Huawei or its affiliates.
This move is part of Washington’s ongoing efforts to constrain Huawei’s operations, which have faced US sanctions amid concerns about China’s technological ambitions. If enacted, the bill would put additional pressure on global chip companies that maintain business relationships with the Shenzhen-based tech giant.
According to the Government Accountability Office, the Pentagon committed nearly $460 billion in contracts in fiscal 2023. Companies connected to Huawei risk losing access to these lucrative opportunities if they are found to violate the new restrictions.
Although the US Commerce Department still allows limited sales of less-sensitive goods to Huawei, restrictions like these would tighten oversight. Earlier this year, the US revoked licenses for companies like Intel and Qualcomm to do business with Huawei. However, between November 2020 and April 2021, the Commerce Department approved $60 billion worth of licenses, despite Huawei being added to the US entity list in 2019.
Republican Representative John Moolenaar, chair of the House China Select Committee, recently criticized the Biden administration for maintaining "loopholes" that allow Huawei to continue acquiring US technology.
Under the new defence legislation, restrictions on Huawei would go into effect 270 days after being signed by the President. The bill does include a waiver if the Secretary of Defence deems a contract essential for national security and no other suppliers are available.
However, the bill faces a potential roadblock in the House. Adam Smith, the top Democrat on the House Armed Services Committee, is urging Republicans to remove a controversial provision that would restrict military dependent children from receiving treatment for gender dysphoria. This could jeopardize Democratic support needed for the bill’s passage.
As US-China tensions continue to escalate over technological competition, this latest move represents another strategic effort by Washington to limit Huawei's influence and control over advanced technologies.