14 DAY TRIAL // The United States is planning a new series of sanctions against Chinese tech giant Huawei, Commerce Secretary Wilbur Ross recently announced.
According to an interview that he offered to Bloomberg, the government is currently working on an updated set of restrictions for Huawei in an attempt to prevent even more components manufactured by American firms to be used on Chinese devices.
Huawei was banned in May 2019 from using software and hardware developed by American companies, including here Android, the operating system that was powering the company’s smartphones.
However, the US now wants to make it even more difficult for Huawei to use American products by increasing the export exemptions requirements.
Using American products becomes mission impossible
Right now, Huawei can use hardware and software developed by US-based firms if more than 75 percent of the manufacturing or development is conducted in another country. According to the report, the US government wants to increase this limit to 90 percent, essentially making it harder for Huawei to use American products.
According to the updated guidelines, if the Unites States is responsible for 10 percent or more of a specific product, then Huawei can’t use it.
Additionally, the US government also wants to ban Huawei from using solutions developed by American companies even if they are manufactured in a different country. In other words, Huawei would no longer be allowed to purchase hardware or software even if it’s made in a non-US facility, as long as the parent company is based in the United States.
US Commerce Secretary Wilbur Ross says this new set of rules is still in the works, but an official announcement should come shortly.
“They are works in progress that will come out near-term,” he said.
An ETA as to when the new sanctions are projected to be announced hasn’t yet been provided.