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

Jun 21, 2020 - World

Exclusive: Trump held off on Xinjiang sanctions for China trade deal

Illustration: Aïda Amer/Axios

In an Oval Office interview on Friday afternoon, President Trump told me that he held off on imposing Treasury sanctions against Chinese officials involved with the Xinjiang mass detention camps because doing so would have interfered with his trade deal with Beijing.

Driving the news: Asked why he hadn't yet enacted Treasury sanctions against Chinese Communist Party officials or entities tied to the camps where the Chinese government detains Uighurs and other Muslim minorities, Trump replied, "Well, we were in the middle of a major trade deal."

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 8 a.m. ET: 21,239,182 — Total deaths: 766,414— Total recoveries: 13,265,843Map.
  2. U.S.: Total confirmed cases as of 8 a.m ET: 5,314,021 — Total deaths: 168,458 — Total recoveries: 1,796,326 — Total tests: 65,676,624Map.
  3. Health: The coronavirus-connected heart ailment that could lead to sudden death in athletes.
  4. States: California passes 600,000 confirmed coronavirus cases.
  5. Cities: Coronavirus pandemic dims NYC's annual 9/11 Tribute in Light.
  6. Business: How small businesses got stiffed — Unemployment starts moving in the right direction.
  7. Politics: Biden signals fall strategy with new ads.

Kamala Harris and the political rise of America's Indian community

Vice presidential hopeful Sen. Kamala Harris (D-Calif.) Photo: Drew Angerer/Getty Images

When Democrats next week formally nominate the daughter of an Indian immigrant to be vice president, it'll be perhaps the biggest leap yet in the Indian American community's rapid ascent into a powerful political force.

Why it matters: Indian Americans are one of the fastest-growing, wealthiest and most educated demographic groups in the U.S. Politicians work harder every year to woo them. And in Kamala Harris, they'll be represented in a major-party presidential campaign for the first time.