US nears rule-change to restrict Huawei’s global chip supply, say sources

The Huawei logo is pictured on the company’s stand during the Electronics Show — International Trade Fair for Consumer Electronics at Ptak Warsaw Expo in Nadarzyn, Poland, May 10, 2019. — Reuters pic
The Huawei logo is pictured on the company’s stand during the Electronics Show — International Trade Fair for Consumer Electronics at Ptak Warsaw Expo in Nadarzyn, Poland, May 10, 2019. — Reuters pic

WASHINGTON, March 25 — Senior cabinet officials in the Trump administration agreed to new measures to restrict the global supply of chips to China’s Huawei Technologies, sources familiar with the matter said, as the White House ramps up criticism of China over coronavirus.

Under the change, foreign companies that use US chipmaking equipment would be required to obtain a US licence before supplying Huawei. The Chinese telecoms company was blacklisted last year, limiting the company’s suppliers.

Because most chipmaking equipment used worldwide relies on American technology, the change would represent a major expansion of export control authority that some trade experts have said would anger US allies.

It is unclear if President Donald Trump, who appeared to push back against the proposal last month, will sign off on the rule change.

The new measures came after US officials from various agencies agreed yesterday to alter the Foreign Direct Product Rule, which subjects some foreign-made goods based on US technology or software to US regulations, the sources said. — Reuters

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