The US Department of Commerce has pulled a prospective guideline would have made it more difficult for US companies to sell to Huawei, according to sources who spoke with the Wall Street Journal, after the Pentagon and Treasury Department protested the rule.
Today, US companies can sell chips or other electronic products to Huawei from their abroad locations without an export license as long as those goods are made with less than 25 percent of products or patents that aren’t made by United States business.
However, the Commerce Department had actually proposed a new rule to the Workplace of Management and Spending Plan (OMB) that would have reduced that portion to 10 percent. The Pentagon apparently challenged that modification because it believed it would injure United States business by limiting just how much they might sell to Huawei, and the Commerce Department pulled the rule from the OMB.
Huawei stays successfully blacklisted by the United States after President Trump stated an executive order last Might that disallowed American businesses from dealing with the company without a license from the United States government. That implies, for instance, that Google can’t accredit Android to Huawei to utilize on Huawei phones. Some companies still do sell to Huawei in part, and the guideline that was simply pulled by the Commerce Department would have made selling to Huawei even more difficult than it currently is.
Huawei and the Department of Commerce didn’t right away respond to ask for comment.