Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party have urged Commerce Secretary Gina Raimondo to take further action against Huawei. The lawmakers are concerned about Huawei's alleged clandestine semiconductor facilities, which they claim are used to bypass U.S. laws.
In their letter, Moolenaar and Krishnamoorthi emphasized, "You have long been a leader in raising alarm about the threat posed by Huawei’s chip capacity... Just as you have taken steps to prohibit Huawei from purchasing U.S. chips, it is similarly important and logical to restrict the flow of SME to prevent Huawei from fabricating its own chips."
The lawmakers allege that Huawei has been using firms such as Pengxinxu, SwaySure Technology, Qingdao SiEn, among others, none of which are currently on the Department of Commerce’s Entity List. They suggest that these companies should be considered for addition to this list due to their connections with Huawei.
"PXW Semiconductor’s sister firm, SwaySure, which reportedly is developing advanced memory chips for AI, is understood to be ultimately controlled by the Shenzhen State-owned Shenzhen Major Industrial Investment Group Co., Ltd., the same entity that controls PXW (on the entity list), with SwaySure also being run by former Huawei executives," they stated.
The letter urges quick action to deny Huawei access to U.S.-produced semiconductor manufacturing equipment (SME) and emphasizes national security concerns related to these activities. The lawmakers argue that failing to act would benefit a small group of American companies at the expense of global chipmakers.
Moolenaar and Krishnamoorthi expressed appreciation for previous actions taken by Commerce but highlighted ongoing concerns about negotiations allowing Huawei time to stockpile necessary SME. They concluded by expressing anticipation for Raimondo's response.
