BIS 'Aware of' Reports of Huawei Attempt to Circumvent U.S. Chip Export Ban

The Commerce Department Bureau of Industry and Security is “aware of” reports Huawei is attempting to circumvent U.S. restrictions on semiconductor exports to the company by providing money for Chinese startup Pengxinwei (PXW) IC Manufacturing to build a chip manufacturing plant in Shenzhen that’s expected to largely distribute its products to Huawei, a department official said Tuesday. Senate Intelligence Committee Vice Chairman Marco Rubio of Florida and four other GOP senators urged President Joe Biden Monday to “halt” the PXW construction plans (see 2210170078) and Commerce is “working with the White House” to respond to those concerns, a spokesperson said: “BIS is conducting a review of existing policies related to China and will potentially seek to employ a variety of legal, regulatory, and, when relevant, enforcement tools to keep advanced technologies out of the wrong hands.” The bureau is “taking a comprehensive approach to implement additional actions necessary related to technologies, end-uses, and end-users to protect U.S. national security and foreign policy interests,” the spokesperson said.