Exclusive: U.S. officials are frustrated that even though the Commerce Department put Huawei on a trade blacklist, U.S. technology is still reaching them. They are planning to stop this from happening, according to Reuters’ sources
WASHINGTON - The U.S. government may expand its power to stop more foreign shipments of products with U.S. technology to China’s Huawei, amid frustration the company’s blacklisting has failed to cut off supplies to the world’s largest telecoms equipment maker, two sources said.
But under current regulations, key foreign supply chains remain beyond the reach of U.S. authorities, prompting inter-agency discussions within the administration of President Donald Trump about possible changes to two key rules that could expand U.S. authority to block more foreign shipments to the company, giving more teeth to Huawei’s blacklisting, according to two people familiar with the matter.
If the Commerce Department makes the proposed rule changes, it will allow U.S. authorities to regulate sales of non-sensitive items, such as standard cell phone chips, made abroad with U.S.-origin technology, software, or components to Huawei, which is the world’s second largest smartphone maker.The changes would represent “a major expansion of the reach of U.S. export controls and would be poorly received by U.S. allies and U.S. companies,” said Washington trade lawyer Doug Jacobson.
One rule the Commerce Department and sister agencies are focused on broadening is known as the De minimis Rule, which dictates whether U.S. content in a foreign-made product gives the U.S. government authority to block an export, the people said.
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