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

US eyes Huawei suppliers

US eyes Huawei suppliers

Many Internet and cellphone carriers in rural parts of the USA buy networking equipment from Huawei, and the temporary extension means they can keep their networks up to date.

The U.S. Commerce Department in May placed Huawei Technologies [HWT.UL] on a trade blacklist, citing national security concerns.

The U.S. fears Huawei's equipment could be used by China for spying.

Washington has toned down its pressure on the Chinese company since first adding it to the entity list, allowing certain United States goods to be sold under special licence in recent months.

The expansion of the rules is being considered even though the Trump Administration last week agreed to grant some reprieves on the existing ban and continues to seek a deal to de-escalate a bitter trade war.

Huawei and the Commerce Department did not immediately respond to requests for comment.

He predicted the actions would upset supply chains but that ultimately Huawei would find other companies to fill the gaps.

The modifications would symbolize "a serious enlargement of the attain of US export controls and can be poorly acquired by USA allies and US corporations", stated Washington commerce lawyer Doug Jacobson. It additionally was not instantly clear how the rule-making may happen, although sources stated the modifications would possible have an effect on exclusively Huawei.

But under current regulations, key foreign supply chains remain beyond the reach of USA authorities.

The media could not obtain solid information about how much progress has been made in working out the amendments needed, but noted that China hawks in the administration are hoping for their swift adoption and implementation.

Xilinx Chief Govt Victor Peng, for instance, advised Reuters in July that the corporate decided that its older, 28-nanometer chips and a few chips not designed for 5G gear may legally could possibly be offered to Huawei with no particular license.

The brand new rule issues come simply days after the Commerce Division gave two necessary wins to the blacklisted firm, whose suppliers want particular licenses to promote Huawei U.S. manufactured merchandise.

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

Final week, the company renewed the so-called momentary normal license for Huawei for a 3rd time, extending permission for it to have interaction in restricted transactions to keep up USA rural community operators.

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.