Illustration: Eniola Odetunde/Axios

A new regulation announced last week requires foreign semiconductor suppliers that use U.S. designs to get a license from the U.S. government before selling to Huawei. Business groups aren't exactly welcoming the move with open arms.

Why it matters: The new restrictions may reduce revenues and hobble research and development for U.S. companies.

What they're saying: “It could make it very difficult for U.S. companies who have been selling their products to Chinese companies," said Doug Barry, communications director at the U.S.-China Business Council.

  • "That will affect their revenues, their employment, their supply chain [and] the competitiveness of their products."
  • A knock-on effect is that research and development, in particular, could take a hit, as companies won't be able to reinvest as much revenue into next-generation products.

Background: The U.S. first placed export limits on Huawei in May 2019. But those guidelines were porous. Huawei could still get U.S. products through third-party vendors. Now that loophole is closed.

What to watch: Other Chinese companies will be affected too, particularly if the Chinese government chooses to retaliate by limiting U.S. access to China's markets.

  • "International information and communication technology manufacturers play a vital role in supporting connectivity and economic growth in China and around the world," said Patrick Lozada, director of global policy at the Telecommunications Industry Association.
  • "Potential retaliation aimed at international suppliers could undermine business confidence and limit choices for Chinese companies and consumers."

Go deeper: Huawei makes its case against U.S. hostilities

Go deeper

Aug 26, 2020 - World

U.S. targets Chinese individuals, companies over escalation in South China Sea

Fishing vessels are seen in the South China Sea Photo: Artyom Ivanov/TASS via Getty Images

The Department of Commerce on Wednesday blacklisted 24 Chinese firms for "helping the Chinese military construct and militarize the internationally condemned artificial islands in the South China Sea."

Why it matters: The move comes as the Trump administration continues to ramp up pressure on Beijing amid escalating tensions in the disputed region.

Updated 25 mins ago - Politics & Policy

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Illustration: Sarah Grillo/Axios

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  2. Health: 13 states set single-day case records last week
  3. Business: Where stimulus is needed most.
  4. Education: The dangerous instability of school re-openings.
  5. World: Restrictions grow across Europe.
  6. Media: Fox News president and several hosts advised to quarantine.

Supreme Court rejects request to extend Wisconsin absentee ballot deadline

Photo: Saul Loeb/AFP via Getty Images

The Supreme Court rejected in a 5-3 decision Monday Wisconsin Democrats' request to reinstate an extension of the deadline for counting absentee ballots to six days after Election Day, as long as they're postmarked by Nov. 3.

Why it matters: All ballots must now be received by 8 p.m. on Election Day in Wisconsin, a critical swing state in the presidential election.