Huawei to be targeted by new sanctions package '' purchase a component or service. A further meeting, on February 28, 2020, could ratify this measure.
A few weeks ago, we reported to you that Pentagon officials strongly opposed the prospect of further sanctions against Huawei. Secretary of State for Commerce Wilbur Ross indeed proposes to lower the threshold of American intellectual property beyond which Huawei is not allowed to buy a good or a service. Currently, this threshold is set at less than 25% – it could eventually be lowered to just 10% if Wilbur Ross' recommendations are followed up.
This proposal initially sparked outcry from part of Pentagon officials. They criticize these particularly harsh measures for the potentially devastating effect on sales of American components abroad. This would weaken American companies, instead of strengthening their dominant position. The sector having the most to fear from the consequences of this type of sanctions is notably that of silicon.
Wilbur Ross is said to have managed to convince Secretary of State for Defense Mark Esper on a phone call. A meeting is to be held next week to discuss the measure, and other possible sanctions to limit exports of US technology to China. On February 28, 2020, a new meeting will be held with government officials to potentially endorse this new set of sanctions.
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Despite its fighting spirit, and after showing a certain resilience Huawei begins to suffer fairly badly from the American sanctions. The firm has had to revise its growth targets downwards, and is investing large amounts of money to develop alternatives to American services and technologies.
Source: Android Central