A recent Reuters report is citing two unnamed sources that claim the Trump administration is preparing to block more sales to HUAWEI. An upcoming rule would allow the United States to block low-tech items made overseas with very little U.S. technology, the report says.

Currently, under the ban imposed in May 2019, and the following reprieves, HUAWEI was blocked from purchasing U.S.-made goods and a small number of items made abroad that contain U.S. technology.

Expanding this to list to products with minimal U.S. technology inside would hurt businesses in the U.S., who believe HUAWEI will just source more goods abroad.

Under the current regulations, the U.S. has to power to license or block a foreign product if U.S.-made components make up more than 25% of the value. This De minimis Rule, according to said sources, would be modified only for HUAWEI to lower that percentage to 10%.

Source: Reuters

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