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Home > News > The threshold for Huawei exports drops to 10%? U.S. or expand sanctions on Huawei

The threshold for Huawei exports drops to 10%? U.S. or expand sanctions on Huawei

Today (15), according to Reuters, the US government is about to issue new rules that will significantly expand the authority to prevent foreign-made goods from being shipped to Huawei.

In May last year, the U.S. Department of Commerce included Huawei and its affiliates in the export control "entity list" based on national security considerations, and barred U.S. companies from selling software and hardware products and technologies to Huawei, including U.S.-made products and Some foreign products contain US technology; however, under current regulations, key foreign supply chains are still outside the control of the US government.

Reuters reported in November that the Department of Commerce was considering expanding the "minimum rule" that would determine whether the US content of foreign-made products gave the US government the power to block exports.

Under current regulations, if components made in the United States account for more than 25% of the total value, the United States can require a permit or prevent the export of high-tech products shipped from other countries to China.

Two people familiar with the matter said that the U.S. Department of Commerce has drafted a rule that will lower the export threshold for Huawei to 10% and expand the scope to include non-technical products, such as consumer electronics, including non-sensitive chips.

People familiar with the matter said that if other government agencies approve the measure, the rule may be released within a few weeks, the so-called final rule, and there will be no opportunity for public comment until the new rule takes effect.

In addition, the U.S. Department of Commerce has drafted a regulation to expand the so-called "Foreign Direct Product Rules," under which the United States will regulate foreign goods based on US technology or US software. People familiar with the matter said that the new regulation will target low-tech products based on US technology and produced overseas and shipped to Huawei.