A FILE PHOTO of A Huawei logo is your company located in Shenzhen International Airport in Shenzhen, Guangdong province, China, on July 22, 2019. (REUTERS photo/Aly Song, File/Photo
WASHINGTON (Reuters) – The U.S. Department of Commerce is in the possession of a rule that aims to reduce the sale to a chinese company, Huawei Technologies, amid pushback from the Department of Defense, people familiar with the matter said.
The move will leave the proposal as a danger, but for a President Donald Trump with the administration of the plan, a high-level meeting next week to discuss the issue, the sources said, adding that the Pentagon cited concerns about the impact on U.S. companies.
The Commerce Department did not immediately have a comment. Huawei declined to comment.
Trade-in May be placed Huawei on a commercial, black, citing national security concerns. That allowed the U.S. government to restrict the sale of American-made goods to the company, and a small number of items made abroad that contain AMERICAN technology.
Under the current regulations, the major international chains will continue to be out of the reach of the U.S. government, fueling frustration among China’s hawks in the administration, and the pressure to extend U.S. authority to block out more of the shipments to the Smartphone.
Reuters reported in November that the us Department of Commerce, and was considering expanding the scope of the rule, which will determine how much U.s. content in foreign-made product, and gives the U.S. government the authority to regulate the sale.
Under the current law, the United States, a license is required, or blocking the export of a lot of high-tech products to be shipped to China from other countries such as the US-made components are more than 25% of the value of it.
According to two people familiar with the matter, and that the transaction has been prepared, as a rule, which would lower the threshold to just export to a Smartphone by up to 10%, and an increase in the opportunities for non-technical issues, such as consumer electronics products, including non-sensitive chips.
The AMERICAN companies claim that it will enable the government to arrange more sales of Smartphone in order to have a low-tech items from other countries with very, very little AMERICAN technology, it would be unnecessarily to hurt the Us companies, while encouraging Huawei to bring more goods to the foreign country.
Reporting by Alexandra Alper, Karen Freifeld and David Shepardson and Mike Stone in Washington; editing by Jonathan Oatis