May 15 (UPI) -- The U.S. Commerce Department on Friday implemented plans to block China's Huawei Technologies from obtaining foreign-made semiconductors built using U.S. technology.
It's the latest effort by the Trump administration to prevent the company from doing business in the United States amid a battle for technological dominance with China.
In 2019, the Bureau of Industry and Security added Huawei to a list of foreign entities required to obtain a license to import U.S. items. The agency said Friday that the company has undermined that rule by importing non-U.S.-made items that are made using U.S. software and technology, such as semiconductors.
"This is not how a responsible global corporate citizen behaves," Commerce Secretary Wilbur Ross said. "We must amend our rules exploited by Huawei and HiSilicon and prevent U.S. technologies from enabling malign activities contrary to U.S. national security and foreign policy interests."
CNBC reported that the rule will hit chipmaker Taiwan Semiconductor Manufacturing Co., a key Huawei supplier.
TSMC announced plans Friday to build an Arizona-based plant. The company already has a manufacturing plant in Washington, and design centers in Texas and California.
In February 2018, U.S. intelligence officials advised Americans against using cellphones by Huawei and ZTE, another Chinese telecom company, warning that they may pose security risks, including allowing spying by the Chinese government.
In May of the same year, the Pentagon announced it would ban the sale of all smartphones made by Huawei and ZTE from all U.S. military bases worldwide.
The 2019 National Defense Authorization Act then included a provision that prevented federal agencies and contractors from buying certain products from the companies.
Huawei has repeatedly denied any risks and in a lawsuit said the ban is based on "numerous false, unproven and untested propositions" and that the U.S. government failed to provide evidence Huawei products pose a security risk.