U.S. planning to add new restrictions on exports to Huawei

The Trump administration is planning to add more business restrictions on Huawei as the government nearing to pass a new rule that would vastly expand the regulation to block shipments of foreign-made goods to the Chinese tech giant.

According to Reuters, under the new regulations, the US can require a license or block the export of many high-tech products shipped to China from other countries if US-made components reach more than 25% in value.

The commerce department drafted a rule that would lower the threshold only on export to Huawei to 10% and expand the purview to include non-technical goods such as consumer electronics including non-sensitive semiconductor products.

In May last year, Huawei was placed in the US Entity-List, which bars the company from doing business with US firms and prohibits the purchase of US-made technologies.

However, the Entity-List program fails to reach suppliers outside of the US and the growing frustration among the US administration, therefore the government has taken new steps to block more shipments to Huawei.

The U.S. businesses concerned that this rule to enable the government to regulate more sales to Huawei could end up hurting US companies when Huawei decides to switch over to other sources abroad.

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