Huawei’s battle against the United States related to the trade ban isn’t coming to an end. However, the company seems to have got a temporary reprieve as a proposal of the U.S. to further restrict sales to Huawei Technologies has encountered objections within the Trump administration and is being held.
U.S. Commerce Secretary Wilbur Ross said on Thursday that new rules were in development that would further limit U.S. companies from supplying Huawei. However, the rules are being opposed by the U.S. Defense Department.
The blocking of the restrictions on Huawei comes at the U.S. Defense Department shares the same concerns that Qualcomm and other U.S. suppliers have been telling the White House that blocking trade with Huawei will cut off revenue that could be used for further product research.
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The new rules will make it harder for American companies to sell to Huawei from their overseas facilities. Some US-based firms have been selling to Huawei even after the ban, taking advantage of the exemptions if most work to create the products happens outside the United States. The current threshold permitting sales kicks in when 75 percent of the work occurs overseas but the administration is now debating raising this to 90 percent.
Huawei, which the world’s largest telecoms equipment supplier, is one of the biggest purchasers of chips. Semiconductor makers in the U.S. have argued that a complete clampdown is counterproductive since the parts that Huawei needs can be bought from non-US providers.
Amid all this, the Chinese giant is continuing its efforts to reduce its dependency on US-based technology. The company has already unveiled its completely new operating system named HarmonyOS and is working on HMS as a replacement for Google services.
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