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Exclusive: U.S. weighs new rules to restrict the Smartphone – vendor resources

WASHINGTON (Reuters) – The U.S. government is expanding its power in order to stop foreign shipments of products containing U.S. technology to the chinese company, Huawei, in the midst of the frustrations of the company on the black list is to fail to cut off supplies to the world’s largest telecom equipment maker, sources said.

The U.s. Commerce Department, in May, placed in Huawei Technologies, a retail-and-black, with an indication of the national-security concerns. The Smartphone is on the entity list, as it is known, should the AMERICAN government to restrict the sale of U.S. goods to the company, and some other forms of items are made abroad, which will contain AMERICAN technology.

However, under the current regulations, the major international chains will continue to be out of the reach of the U.S. government, in which the inter-agency discussions within the administration of President Donald Trump on possible changes to the two key rules that will be able to extend U.S. authority to block foreign shipments of the company, by giving more teeth to the Smartphone in a black or white list, according to two people familiar with the matter.

The extension of the rules that are to be considered, even if the Home’s Administration last week agreed to grant some respite to the existing ban and will continue to look for a deal to de-escalate a bitter trade war.

If the Department of Commerce on the proposed amendments to the rules of, the AMERICAN authorities are arranging for the disposal of non-sensitive items, such as a standard mobile phone chips are made in foreign countries with U.S.-origin technology, software, or Huawei, which is the world’s second-largest smartphone maker.

Huawei and the ministry of Trade does not immediately respond to a request for comment.

The changes would represent “a significant extension of the scope of U.S. export controls, and would be badly received by the allies, and the AMERICAN companies,” said a Washington trade lawyer Doug Jacobson.

He predicted the action could disrupt the supply chain, but in the end, Huawei would have to find other companies to fill the gaps.

As a rule of the Department of Commerce and the sister agencies have been directed to the expansion, it is well-known as the “de minimis” Rule, which determines whether or not the U.S. content in foreign-made product, it gives for the US government to block exports, the people said.

Civil servants may also be extended to the so-called Direct-Product Rule, which subjects foreign-produced goods, which are based on U.S. technology or software provided to the U.S. rules and regulations.

It is not clear how far the government will make a decision on the changes, or whether or not they should be implemented gradually or all of a sudden. It was not immediately clear how the regulations will be, although sources said that the changes are likely to affect only a Smartphone.

Some China hawks in the administration are hoping to see the results, the people said.

After a few months, Huawei has been added to the list of entity providers, such as Intel Corp. (a). (INTC.O) Xilinx Inc. (XLNX.(O) and Micron Technology, Inc. (MU.(O) to resume some of the shipments for the Chinese company, and after the execution of the internal reviews to determine what products are not covered by the ban.

Xilinx’s Chief Executive, Victor Peng, for example, had told Reuters in July that the company has determined that its legacy with the 28-nanometer chips, and the chips are not designed for the 5G acceleration, it could be legal to be sold to the Smartphone, without a special permit. Sell it to a company on the list, suppliers are subject to the U.S. rules, in general, to apply for, and receive, a license.

Xilinx and the other companies did not have to explain why they have decided that they will not be covered by the entity list of the ban.

A FILE PHOTO of A Huawei logo is pictured at the Shenzhen International Airport in Shenzhen, Guangdong province, China, on July 22, 2019. (REUTERS photo/Aly Song, File/Photo

The new line of considerations, to come a few days after the Commerce Department gave two major wins in the black-listed company, where the vendors have a special license to sell, Huawei, U.S.-manufactured products.

Last week, the agency extended the so-called temporary general license for the Huawei ascend for a third time, and for the extension of permission to engage in restricted transactions, and to maintain the U.S. national network operators.

And Wednesday, He published a batch of about 75 licenses, so that a number of vendors at the start of the sale to the company, Huawei has placed a trade in black, about six months ago.

Reporting by Alexandra Alper and Karen Freifeld; Additional reporting by Stephen Nellis in San Francisco; Editing by Chris Sanders and Edward Tobin

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