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Huawei crackdown

US tech industry fears new Huawei ban will scare off customers

Export control on Chinese tech giant accelerates supply chain decoupling

The Huawei controversy is likely to accelerate efforts by both the U.S. and China to disentangle supply chains, some experts say. (Nikkei Montage/Reuters)

PALO ALTO, U.S. -- When Washington added Huawei Technologies to its trade blacklist last year, U.S. suppliers to the Chinese tech giant lost billions of dollars in revenue. Now, the latest crackdown threatens to take an even bigger toll on America's tech industry by driving U.S. and Chinese supply chains even further apart.

Extending efforts to restrict Huawei over national security concerns, the U.S. Commerce Department announced in May that it will require any company using American technology to supply it, or its affiliates, to apply for a license. U.S. tech companies fear that will drive away not only Huawei, but other business as well.

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