New limits on Huawei Suppliers will soon be imposed by the U.S


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Huawei will be the target of new American sanctions. Secretary of State for Commerce Wilbur Ross has just revealed to Bloomberg that his administration is preparing to intensify the commercial exclusion of the group, and prevent companies from selling it components derived from American technologies.

A few days ago, Huawei CEO Ren Zhengfei explained that he expected intensification of the sanctions. While adding as usual that the firm is ready to face it. However, it would seem that his fears were justified. The Secretary of State for Commerce Wilbur Ross revealed to Bloomberg, on the sidelines of the Davos Forum, that his administration is preparing to impose new sanctions against the firm.

Huawei: new restrictions coming from the United States

Most Valuable Brands 2020 Huawei

The goal is to prevent Huawei from getting components derived from U.S. intellectual property. As for the method chosen by the Trump administration, the secretary of state merely replied: “We are working on it, and [these sanctions] will be announced in the short term”.

Under the current Huawei sanctions, companies around the world can maintain access to the U.S. market. They can sell components to the group if they contain less than 25% of U.S. intellectual property.

According to Bloomberg, what is emerging is that the Commerce Department will lower this threshold, probably to less than 10%. This should significantly disrupt the company’s supply chain. It would also be about new laws to regulate the use of products and components designed in the United States but manufactured elsewhere in the world.

Read Also:  Here is the full list of Huawei P40 series component suppliers

Despite hopes until the end of 2019. Everything indicates that 2020 will be another year of extremely complex challenges for Huawei. The firm can now only rely on its efforts to find its own alternatives to American hardware, software and services. What do you think about Huawei’s current situation? Let us know in the comment box below.

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