US Commerce Department blocks Huawei's access to foreign chip suppliers

America's Department of Commerce on Friday closed a loophole that it said had allowed Huawei to continue employing US technologies through companies not on its national security blacklist.

The decision would block shipments of semiconductors produced with US software and technology by all companies.

Under the new rule, firms using US chip-making equipment would require express authorisation from Washington in the form of licenses.

Commerce's actions meant that Huawei could be blocked from supplies of some chipsets or certain semiconductor designs.

Wafers already under production for Huawei could be shipped so long as the shipments completed in the 120 days starting from 15 May.

Previously, Washington had placed Huawei and 114 affiliates on a blacklist citing national security concerns.

A separate licensing arrangement allowing wireless networks in the rural US to continue conducting business with the Chinese technology firm and which had been set to expire on Friday was extended until 13 August.

However, Commerce said it expected that to be the last extension.