Huawei gets reprieve as Trump aides disagree on restrictions

The Treasury Department and the Pentagon are said to have opposed further tightening of US tech sales to Huawei

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The US semiconductor industry argues that further tightening of sales to Huawei Technologies, the world’s largest telecommunications equipment supplier, could reduce its competitiveness and ability to innovate. Photo: Agence France-Presse

Published: 1:11pm, 25 Jan 2020Updated: 4:57pm, 16 Feb 2020

A United States proposal to further restrict sales to Huawei Technologies has encountered objections within the Trump administration and is being held up as officials debate whether the step could harm exporters, a person familiar with the process said.

US Commerce Secretary Wilbur Ross on Thursday said new rules coming soon will put more limits on technology sales to Huawei, which American officials suspect of making telecommunications equipment that could be used for espionage – an allegation the Chinese company has denied.

The proposal, however, has foundered at least temporarily amid objections, said the person who spoke on condition of anonymity because the discussions are not public.

The Wall Street Journal reported on Friday that the Treasury Department and the Pentagon opposed the tightening. Asked on Friday about the matter, Defence Secretary Mark Esper seemed to acknowledge the administration’s discussions.

Esper did not specifically address Huawei, but said there is always a “back-and-forth” during inter-agency talks about proposed rule changes.

At issue are rules to make it harder for American companies to sell to Huawei from their overseas facilities. Some US companies have kept selling to Huawei by using exemptions if most work to create the products happens outside the US.