Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. still eyeing ways to curb sales to Huawei after Trump's chipmaker comments: sources

Stock Markets Feb 24, 2020 08:10PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. U.S. President Trump talks to reporters as he receives a Hurricane Dorian update at the White House in Washington

By Karen Freifeld and Mike Stone

(Reuters) - U.S. government officials are still considering ways to further curb sales to China's Huawei Technologies [HWT.UL], despite President Donald Trump's tweets and comments last week in support of sales to China, according to people familiar with the matter.

An interagency meeting was held on Thursday to discuss national security and China export issues, including proposals to restrict sales of chips to Huawei, the world's second-largest smartphone maker, and a plan to block the sale of jet engines for China's new passenger airplane.

While blocking General Electric Co (N:GE) from supplying jet engines appeared to be off the table after Trump opposed efforts to stop their sale, sources told Reuters on Monday new restrictions aimed at cutting Huawei off further from its suppliers were still under discussion.

Trump told reporters last week he wanted U.S. companies “to be allowed to do business.”

"I mean, things are put on my desk that have nothing to do with national security, including with chipmakers and various others,” he said.

He said he had been "very tough" on Huawei, but did not provide further details, and added that national security concerns should not be used as an excuse to make it difficult for foreign countries to buy U.S. products.

His comments contrasted with the sharp restrictions his administration has placed on U.S. companies trading with Huawei over national security concerns and foreign policy interests.

The United States alleges the Chinese government could use Huawei equipment to spy, an accusation Huawei has rejected.

DIVISIONS

Policymakers have been sharply divided over Huawei and China ahead of a possible cabinet-level meeting, which had been scheduled for Feb. 28 but has now been pushed to a later date. Some officials have favored a tougher line while others are more focused on trading with the world’s second largest economy.

Officials from various government agencies are trying to come to a consensus ahead of the cabinet meeting, one person familiar with the matter said.

  In their meeting on Thursday, officials discussed possible changes to what is known as the de minimis rule, which dictates how much U.S. content can be in a foreign-made product before the United States has authority to regulate its sale, the sources said.

    Under current regulations, the United States can require a license or block the export of many high-tech products shipped to China from other countries if U.S.-made components make up more than 25% of the value.

    But the U.S. Department of Commerce 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.

Officials discussed lowering that threshold at Thursday's meeting, a second source said.

    The government agencies also have been considering changing the Foreign Direct Product Rule, which subjects foreign-made goods based on U.S. technology or software to U.S. oversight.

    One proposed change would force foreign companies that use U.S. chipmaking equipment to seek licenses before supplying Huawei.

    Huawei was placed on a U.S. trade blacklist last May that allows the United States to restrict the export of American-made goods to companies believed to be involved in activities contrary to the U.S. national security or foreign policy interests.

But many foreign supply chains remained beyond the reach of U.S. authorities, frustrating China hawks and spurring the proposals to expand controls.

    Reuters exclusively reported in November that the United States was considering altering the two rules to expand its power to restrict the foreign shipment of products with U.S. technology to Huawei.

U.S. still eyeing ways to curb sales to Huawei after Trump's chipmaker comments: sources
 

Related Articles

Bank of Italy plays down talk of early Visco exit
Bank of Italy plays down talk of early Visco exit By Reuters - Jun 28, 2022

ROME (Reuters) -The Bank of Italy sought to douse talk that its governor Ignazio Visco could leave his post ahead of schedule in October after a newspaper report on Tuesday raised...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Kaveh Sun
Kaveh Sun Feb 24, 2020 10:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fact is it was founded by a guy from military which is tied to the gov.
David David
David9 Feb 24, 2020 10:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
That kind of fact doesn't survive in the business world. Please go tell a judge that and he what he would say, if that is all the facts you have.
David David
David9 Feb 24, 2020 9:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US is being ridiculous. These are people inside Trump administration that are wanting to do this. Dept of Defense and Treasury don't think this is a good idea, even Trump. So Trump better start firing you racism sorry ********in his admin before they ruin American businesses.
David David
David9 Feb 24, 2020 6:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US can't do that. They think they can, but we are on a global stage. Companies are really intertwined. US chips will.hurt badly if he thinks to curb sale to Huawei. And Huawei can buy from others and will develop their own. Trumo will be reckless if he tried to curved.
Chris Martin
Chris Martin Feb 24, 2020 6:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wong Again - we don't support commie espionage!
David David
David9 Feb 24, 2020 6:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Give me evidence. Without evidence, it is all he said she said thing.
Jeff Chevalier
Jeff Chevalier Feb 24, 2020 6:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is nothing more than the US panicking because a Chinese company has beat them in a tech war. 5G is big money and the US will say and do anything to try and keep China from becoming the leader.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email