EXCLUSIVE-U.S. nears rule-change to restrict Huawei’s global chip supply -sources


Senior cabinet officials in the Trump administration voted in favor of new measures to limit the global supply of chips to Huawei technologies in China, sources familiar with the issue said as the White House intensifies criticism of China over the corona virus. Under this change, foreign companies using U.S. chips-making equipment should obtain a U.S. license before supplying certain chips to Huawei. The Chinese telecom company was blacklisted last year, limiting the company’s suppliers.

One of the sources said the rule change is intended to limit the sale of advanced chips to Huawei and not older, more commercialized and widely available semiconductors. Since most of the chip-making equipment used globally relies on U.S. technology, the change would extend the export control authority, which some trading experts have said would anger U.S. allies.

It is unclear whether President Donald Trump, who seemed to push back against the proposal last month, will sign the rule change. The decision came when U.S. officials from various agencies met on Wednesday and agreed to amend the Foreign Direct Product Rule, which makes some foreign-made goods based on U.S. technology or software subject to U.S. regulations, the sources said.

The United States Department of Commerce, which would play a role in implementing a rule change, had no immediate comment.

(This story has not been edited by staff and is automatically generated from a syndicated feed.)


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