U.S. government could issue new rules to block shipments to Huawei

 


	Trump administration had issued 75 licenses to allow Huawei suppliers to resume sales
	U.S. Commerce Department and other authorities focused on utilizing De minimis Rule


The U.S. government is reportedly considering new policies to restrict the shipment of products to the Chinese multinational technology giant Huawei.

For the record, the Chinese mobile giant had been banned across the U.S. market in May and formal legislation that prohibits American companies from doing business with Huawei has limited the company’s ability to source U.S. technologies.

However, the Trump Administration could reportedly inter-agency talks on the current ban for changing two rules that could empower U.S. to block more foreign shipments to Huawei.

The announcement seemingly follows U.S. Commerce Department renewing the temporary general license for Huawei for the third time. Experts claim that this will enable Huawei to engage in limited trading with the U.S.

The proposed measures will permit the U.S. government to control the sale of phone chips and other non-sensitive goods to Huawei, if they are made using U.S. technology.

According to industry experts, the new reforms will extend the reach of U.S. export and will be poorly received by U.S. companies and U.S. allies.

The U.S. Commerce Department is reportedly focused on utilizing the De minimis Rule, which states whether U.S. content in foreign-manufactured products give U.S. government the right to block a product export.

The Commerce Department may allegedly expand Direct Product Rule, which puts foreign-made products which are made using U.S. technology subject to U.S. regulations.

Sources aware of the development stated that sometime after Huawei entered the blacklist, distributors such as Micro Technology, Intel and Xilinx restarted few shipments to the Huawei after conducting internal reviews.

Notably, the Trump administration had also recently issued 75 licenses to allow Huawei suppliers to resume sales to the company.

U.S. had evidently blacklisted Huawei over national security concerns in May, preventing it from buying any part made by the US without a special license.

 

Source Credits – https://www.cnbc.com/2019/11/29/us-weighs-new-regulations-to-further-restrict-huawei-suppliers-sources-say.html