After the trade ban, the US has tried every possible option to stop Huawei’s business in both network equipment and smartphone business and in turn of events, the US is now planning to implement more business block for the Chinese tech giant.
According to Reuters, the US government may expand its power to stop foreign shipments of products with US technology to Huawei, due to the frustration of failed attempt to cut off supplies to Huawei.
Back in May, the US commerce department placed Huawei in the Entity-List, which blocks its access to American technologies including semiconductors, software services provided by Google.
However, following the restrictions, Huawei found alternatives to most of the US technologies, making the US trade ban ineffective and shrunk its effect to the lowest.
Under the current regulations, key foreign supply chains remain beyond the reach of the US authorities, prompting inter-agency discussions about the possible changes to two key rules that could expand U.S. authority to block more foreign shipments to the company, giving more teeth to Huawei blacklisting.
This new restrictions plan is being considered after the Trump administration has agreed to give new reprieve on the business ban and to distribute special trade licenses for suppliers who want to sell products to Huawei.
The source also revealed, further expansion of trade ban will broaden the US regulations on non-sensitive items, such as standard cell phone chips made outside the country with the U.S. originated technologies, software, and components.
Currently, it’s not clear when the administration will make a call on this decision but the related sources revealed that it’s especially being considered to affect only Huawei.
“The actions would upset supply chains but that ultimately Huawei would find other companies to fill the gaps” Washington trade lawyer Doug Jacobson.
In conclusion, we can see this new decision as a post-failure effect of the Entity-List program, which almost didn’t harm the company.