The government of the USA might expand its control to hinder the foreign shipments of the products that contain US-based technology to Huawei in China. The blacklisting of the company did not cut off its supplies to the world’s largest equipment making telecom company.
The Department of US Commerce has put the company, Huawei Technologies, in a trade blacklist in May, citing the concerns for national security. On putting Huawei Technologies on the entity list, the US government could restrict the selling of US-made goods and some of the other products that are manufactured abroad containing US technology to the company.
But as per the present regulations, the critical foreign supply chains endure surpassing the influence of US authorities, aiding inter-agency negotiations in the administration of President Donald Trump concerning to the feasible changes to two essential rules that may extend the power of U.S. to hinder more further foreign shipments to the company, providing more projections to Huawei’s blacklisting. The extension of the rules is still being continued even after the discussion agreeing to the grant of some releases made on the current ban.
Washington trade lawyer Doug Jacobson said that “These changes made on the controlling of US export reach would have a significant impact and will be received poorly by the US companies and US allies.” He also prognosticated that this action would bother the supply chain, but that will eventually make Huawei find other companies to fill the gap.
Suppliers like Xilinx Inc, Micron Technology Inc, and Intel Corp have renewed some of the shipments to the China company after administering internal reviews to estimate whichever goods were not subjected to the ban.
Last week, the renewal of the Huawei’s temporary general license was made for the third time by extending its permission to make limited transactions for the maintenance of US rural network operations.
On Wednesday, the administration of Trump has issued 75 licenses to allow some of the suppliers to restart their sales to the Huawei Technologies, which was placed in the blacklist six months ago.