The US government is close to publishing a law that would broaden its powers significantly to prevent foreign cargo shipments to Chinese Huawei, as the US administration seeks to pressure the blacklisted telecom company, according to a new report from Reuters.
In May last year, the US Department of Commerce placed Huawei on a blacklist for trade, citing national security concerns.
This allowed the US government to restrict sales of American-made goods to the Chinese company, as well as to restrict sales of a small number of items made abroad that contain American technology.
Under current regulations, major foreign supply chains are still out of the reach of the US authorities, adding to frustration among anti-Chinese within the US administration who are trying to expand the authority of the United States to prevent more shipments to Huawei.
American companies say that efforts to enable the government to organize more sales for Huawei to include simple technology components made abroad with very little American technology may ultimately cause unnecessary damage to American companies.
These companies confirmed that the actions of the American administration encourage Huawei to obtain more goods from abroad.
Reuters reported in November that the Commerce Department was considering expanding the minimum base, which limits the amount of US content in a foreign product that gives the US government the power to regulate exports.
Under current regulations, the United States can either authorize or prevent the export of many of the most advanced technology products shipped to China from other countries if American-made components make up more than 25 percent of them.
According to the information, the Ministry of Commerce has drafted a law that would reduce the percentage to 10 percent on exports to Huawei only, while expanding its scope to include non-technical goods such as consumer electronics including non-sensitive chips.
The Ministry of Commerce sent the law to the Office of Management and Budget last week, and if other government agencies sign it, it can be issued within weeks as a final law, with no public comment opportunity before it takes effect.
The Commerce Department also drafted a regulation that would expand the so-called Foreign Direct Products Act, which subjects US-made foreign goods or technology programs to U.S. surveillance.
This regulation is supposed to be expanded to include simple technology components made abroad that are based on American technology and are being shipped to Huawei.
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