Huawei is expected to be subject to a new sanctions package: Commerce Secretary Wilbur Ross has reportedly managed to convince the Pentagon to support a lowering of the U.S. intellectual property threshold beyond which Huawei is not allowed to buy a component or service. A new meeting on February 28, 2020, could endorse this measure.
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A few weeks ago, we reported that Pentagon officials had strongly opposed the prospect of new sanctions against Huawei. Commerce Secretary Wilbur Ross is proposing to lower the threshold for U.S. intellectual property beyond which Huawei is not allowed to buy a good or service. Currently, this threshold is set at less than 25% – it could eventually be lowered to only 10% if Wilbur Ross' recommendations were implemented.
Initially, the proposal sparked an outcry from some Pentagon officials. They blame these particularly harsh measures for the potentially devastating effect on U.S. component sales abroad. This would weaken U.S. companies, instead of strengthening their dominant position. The sector with the greatest fear of the consequences of such sanctions is silicon.
Turnaround
Wilbur Ross, however, reportedly managed to convince Defense Secretary Mark Esper in a phone call. A meeting is scheduled for next week to discuss the measure, and other possible sanctions to limit U.S. technology exports to China. On February 28, 2020, a new meeting will be held with government officials to potentially endorse this new package of sanctions.
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Despite his combativeness, and after showing some resilience Huawei is beginning to suffer quite harshly from U.S. sanctions. The firm has had to revise down its growth targets, and is investing large amounts of money to develop alternatives to U.S. services and technologies.
Source: Android Central