U.S. weighs new regulations to further restrict Huawei suppliers

U.S. weighs new regulations to further restrict Huawei suppliers

U.S. weighs new regulations to further restrict Huawei suppliers

Neither Huawei, nor the US Department of Commerce, which is responsible for the implementation of restrictive measures in trade, have commented on the report.

US President Donald Trump's administration is considering toughening its pressure on Chinese tech giant Huawei, having been disappointed with the effects the current measures have had on limiting the company's capacity to deploy 5G networks world-wide, Reuters reported, citing anonymous sources.

Meanwhile, followed by a break out of the report that the U.S. was drawing up a plan to curb foreign tech shipments containing USA technologies to China's Huawei, a Washington trade lawyer was quoted saying on Friday (November 29th) that the changes would likely to represent a major expansion of U.S. export controls and to annoy a slew of US-based companies alongside allies of the United States.

Huawei and the Commerce division didn't instantly reply to a request for remark. Huawei denies the allegations and says the USA has given no evidence that the company presents a threat.

But under current regulations, key foreign supply chains remain beyond the reach of US authorities. Huawei said the move "has caused significant economic harm to the American companies with which Huawei does business, disrupted collaboration and undermined the mutual trust on which the global supply chain depends".

One rule the Commerce Department and sister agencies are focussed on broadening is known as the De minimis Rule, which dictates whether USA content in a foreign-made product gives the US government authority to block an export, the people said.

According to Reuters, Trump's administration is looking at amending the De Minimis Rule and Direct Product Rule, with both of them addressing what power Washington has over US-made technologies used in foreign-made products. It also was not immediately clear how the rule-making might take place, though sources said the changes would likely affect only Huawei.

Xilinx and the opposite corporations didn't clarify why they determined they didn't fall beneath the entity listing ban.

Some China hawks within the administration are hoping for swift results, the people said. To sell to a blacklisted company, suppliers subject to USA rules generally need to apply for and receive a special license.

The new rule considerations come just days after the Commerce Department gave two important wins to the blacklisted company, whose suppliers need special licenses to sell Huawei products manufactured in the U.S.

Tensions between Washington and Beijing have been inflamed by Trump's signing into law on Wednesday bills that back protesters in Hong Kong and threaten China with possible sanctions on human rights.

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