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U.S. Moves Toward Blocking More Sales to Huawei: Reuters

January 15, 2020 10:39 am

Beijing (PingWest)—The U.S. government is nearing publication of a rule that would vastly expand its powers to block shipments of foreign-made goods to Chinese telecom giant Huawei, two sources familiar with the matter told Reuters.

According to the sources, Commerce has drafted a rule that would lower the threshold only on exports to Huawei to 10% and expand the purview to include non-technical goods like consumer electronics including non-sensitive chips.

According to one of the people, the Commerce Department sent the rule to the Office of Management and Budget, following an interagency meeting last week.

If other government agencies sign off on the measure, the rule could be issued in a matter of weeks as a so-called final rule, with no opportunity for public comment before it goes into effect, the people said.

Commerce has also drafted a regulation that would expand the so-called Foreign Direct Product Rule, which subjects foreign-made goods that are based on U.S. technology or software to U.S. oversight. This would be broadened to include low-tech items made abroad that are based on U.S. technology and shipped to Huawei, the people said.