US plans new sanctions for Huawei

US Commerce Secretary Wilbur Ross recently told Bloomberg that the US government is working on a new set of trade restrictions to impose upon Huawei.

These new restrictions will add further limits on US companies’ ability to work with Huawei.

“They are works in progress that will come out near-term,” said Ross.

He added that the US government isn’t particularly focused on cutting Huawei off from US suppliers, but it is doing so to protect US national security.

He also said the Huawei restrictions weren’t negotiated in the previous “phase one” of the trade agreement, and the US isn’t planning on negotiating them in phase two either.

Navigating the Huawei ban

The US blacklisted Huawei last year and labelled it a security threat, meaning that many US companies were unable to supply components to the company.

However, some companies have found workarounds to continue supplying electronic components – a practice that the new restrictions will attempt to nullify.

Ross told Bloomberg that Huawei has been encouraging US companies to utilise these workarounds, and claimed that this is a “very dangerous practice and in the longer term is not going to be good for them”.

Now read: Huawei not worried about stricter US sanctions

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US plans new sanctions for Huawei