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The US weighs new regulations to further restrict Huawei suppliers: Report

With already being blacklisted in the US Huawei cold face more reduction in shipments for the telecommunications equipment as the US government tries to stop foreign shipments to the company with US origin materials.

The commerce department of the US government blacklisted the world’s largest telecom equipment manufacturer citing national security threats and concerns. By putting Huawei in the blacklist the US government has restricted the number of electronic goods being exported to the company.

But right now the US government is trying to change key rules by holding discussions with foreign countries to try and limit US origin goods from being supplied to the Chinese company with a product that would be exported to Huawei and thus limit further shipments to the already blacklisted company.

But last week the Trump administration agreed to grant some reprieves to the blacklisted companies and thus try to de-escalate the tensions of the ongoing bitter trade war. If the US is able to get success it can tweak the rules limiting the export of phone chips, and other equipment with US-made technology in it.

Experts all around the globe and in the US have warned the US that any such move to block the supply chains would not be welcome by other US allies and US companies and that Huawei could find other companies to fill the gaps in its supplies. China could also retaliate with such a move which would affect the companies in the US or by further increasing the tariffs.

One such rule already exists in global trade which gives the US the right to limit the US origin product to be exported to another country. The officials might be trying to bring in the subject of electronics and software to be added to the rule. It is unclear whether the consequences would be implemented suddenly or gradually.

Isabel Ernest
Isabel Ernest Subscriber
Sr. Content Editor & Writer At Chemical News Reports 24

The basic reason for Isabel to pursue a Degree in Industrial engineering was the mysteries that are entailed by the universe. Isabel has always been wondering and looking for studies projecting the presence of alien life forms. And having an interest in writing just made things easy for Isabel to opt for the position of Sr. Content Editor & Writer. She has been a part of this portal for 3 years now. Her hard work and dedication have been fruitful by being appointed as Head of the Industry News domain. Isabel handles the A to Z of this domain as well as encourages her team members to give the best of quality while working.

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