US Working on New Restrictions on Huawei

Huawei tension with the US, one of the most debated issues in the international trade world, seems to be climbing again. According to some allegations, the US plans to impose new restrictions on Huawei.


While the trade war between the US and China continues, the US does not pause after the sanctions imposed on the Chinese technology giant Huawei . This stressful process, which seems rather complex, continues to get more and more complex.


The US, along with Huawei Technology, has blacklisted 40 more sub-brands . This means that Huawei's exports and transfers to the US will face government restrictions. In addition, the US government has banned the purchase of Huawei brand products.


New restrictions may be on the way


These new developments are also related to the back of the sales and supply chain coin. At present, the components used in the US itself must be under a certain percentage of the foreign products used. In high-tech products, this rate is around 25% . According to new unofficial information, the Department of Commerce  is working on a draft law that will increase this threshold to 10% for Huawei products . The ministry also plans to extend the scope of this draft to non-technology goods such as consumer electronics and unrestricted chips. 


This bill was sent to the Administration and Budget Administration after a meeting last week. If other government administrations sign the bill, the final decision may  come into force in this manner .


Of course, these are not yet official decisions and it is worth to speculate that rumors are correct, but considering the situation between the US government and Huawei, this decision is quite probable. According to some experts, these new restrictions will harm US companies rather than Huawei . The Chinese technology giant can deal with companies from different countries in the supply chain.

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