US Want to Cut Off Huawei's Chip Supply
The US government proposed changing regulations in order to to give it the authority to block global chip sales to Huawei. If that happens, it would be a major escalation in trade restrictions on the Chinese vendor, Reuters reported.
A proposal to change the Foreign Direct Product Rule, which subjects certain overseas-made goods made with US technology to its regulations, was drafted but is among several options to be considered. If the change is approved, non-domestic companies using US technology would need a licence to supply components to Huawei. Companies that make chips for Huawei’s HiSilicon unit would be impacted.
In January, the US Department of Commerce halted plans to expand the terms of a similar trade ban due to concerns about the potential impact to domestic businesses. Last week, the DoC again issued a 45-day extension to a temporary trading licence, allowing US companies to continue to do business with Huawei, the latest in a series of postponements to implementing a trade ban. The US Department of Justice last week expanded legal action against the company, filing charges accusing it of racketeering and conspiring to steal trade secrets from six technology companies.