Unique: U.S. nears rule-change to limit Huawei’s international chip provide – sources

FILE PHOTO: A Huawei firm emblem is pictured on the Shenzhen Worldwide Airport in Shenzhen, Guangdong province, China July 22, 2019. REUTERS/Aly Tune/File Picture

(Reuters) – Senior cupboard officers within the Trump administration agreed to new measures to limit the worldwide provide of chips to China’s Huawei Applied sciences, sources conversant in the matter mentioned, because the White Home ramps up criticism of China over coronavirus.

Below the change, overseas corporations that use U.S. chipmaking tools can be required to acquire a U.S. license earlier than supplying Huawei. The Chinese language telecoms firm was blacklisted final yr, limiting the corporate’s suppliers.

As a result of most chipmaking tools used worldwide depends on American know-how, the change would characterize a serious enlargement of export management authority that some commerce specialists have mentioned would anger U.S. allies.

It’s unclear if President Donald Trump, who appeared to push again in opposition to the proposal final month, will log off on the rule change.

The brand new measures got here after U.S. officers from varied companies agreed on Wednesday to change the International Direct Product Rule, which topics some foreign-made items based mostly on U.S. know-how or software program to U.S. laws, the sources mentioned.

Reporting by Karen Freifeld in New York, David Shepardson and Alexandra Alper in Washington; Modifying by Nick Zieminski

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