US to Postpone Rule Change on Restricting Transactions With Huawei - Reports

WASHINGTON (Pakistan Point News / Sputnik - 24th January, 2020) The US government has decided to postpone implementing a proposed rule change to further limit possible sales to the Chinese tech-giant Huawei, the New York Times reported on Friday citing sources familiar with the matter.

The final decision on limiting US sales to Huawei has been suspended because of the stand that the Defense Department and another unidentified agency took, the report said.

The two government entities said the new regulation, which is intended to protect national security, may actually harm US industry, the report added.

The rule change nearly fully prohibits US companies from selling their products to Huawei, but numerous officials have expressed concern that such prohibition may encourage foreign competitors to stop using US-made components.

Media reports have pointed out that current regulations allow for shipping goods to Huawei if they contain less than 25 percent of US-made content. The new rule reduces the allowed portion to 10 percent.

In May 2019, the US government blacklisted Huawei over its suspected connections to Chinese intelligence and has pressured other countries to refrain from using Huawei's equipment when adopting 5G network technology.