U.S. regulators open door to possible tightening of Huawei chip curb

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U.S. regulators open door to possible tightening of Huawei chip curb
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U.S. regulators are open to making changes to close what some see as a loophole in a new rule aimed at curbing global chip sales to blacklisted Chinese telecoms equipment maker Huawei Technologies Ltd, two U.S. officials said on Wednesday.

People wearing face masks walk past a Huawei store at a shopping mall, following an outbreak of the coronavirus disease , in Beijing, China May 18, 2020. REUTERS/Carlos Garcia Rawlins

But the rule only includes chips designed by Huawei and does not cover shipments if they are sent directly to Huawei’s customers. Some industry lawyers see this as a significant loophole. The rule will “give us a great deal more information upon which to base export control decisions as we move forward and try to find the right answer to these challenges including by adapting, if we need to, if Huawei tries to work around our rules in some way,” Ford said.Huawei declined to comment.

Frustration among China hawks in the administration that the entity listing was not doing enough to cut off Huawei’s access to supplies prompted a crackdown effort, first reported by Reuters in November, that culminated in Friday’s rule.

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