Huawei is the world’s No. 1 telecom provider and No. 2 phone producer, however it’s a pariah in nations like the United States.
Angela Lang/CNET
The United States Department of Defense supposedly obstructed proposed policies that would have made it even harder for United States business to do organisation with Huawei. After objections from the Pentagon, the Commerce Department drew back a proposed guideline that would have even more restricted what United States business can offer to Huawei from outside the nation without an export license, according to a report Friday from The Wall Street Journal.
The Pentagon supposedly felt the brand-new guidelines would take an essential earnings source far from United States business that’s required to keep a “technological edge.”
Currently, parts and other electronic devices made overseas that “contain less than 25% U.S.-made content subject to export restrictions” can be offered to Huawei without a license, according to the Journal. The proposed guideline would have supposedly dropped that down to 10%.
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A representative for the Pentagon said Friday the department is aware of the Commerce Department’s proposed rule change but wouldn’t “prematurely discuss ongoing interagency collaboration.”
A spokesman for the Commerce Department declined to comment on the report, saying “if or when we have something to announce, we will do so.”
In November, the Commerce Department for the third time extended a temporary license that lets American companies do business with Huawei. The department blacklisted Huawei following a May executive order from President Donald Trump that effectively banned the company from US communications networks. It required US companies to get a license to do business with Huawei, which faces national security concerns due to its cozy relationship with the Chinese government.
Huawei has denied any wrongdoing and continues to maintain its innocence. The company didn’t immediately respond to a request for comment.
Originally published Jan. 24, 8:11 a.m. PT.
Update, 8:41 a.m. PT: Adds response from Commerce Department.
