U.S. officials are moving forward with plans to cut off Huawei’s chip supplies in an effort to blunt the company’s 5G dominance.
The U.S. has banned Huawei and is pressuring allies to do the same. Officials claim the company serves as an arm of the Chinese government’s spying operations and opens countries that use the company’s equipment to spying by Beijing. Huawei has vehemently denied the claims, but that hasn’t stopped U.S. officials from taking almost every opportunity to target the company.
Several weeks ago, officials began considering altering the Foreign Direct Product Rule to make it difficult for the Chinese firm to access the chips it needs. Now, according to Reuters, the U.S. is moving forward with those plans.
“The decision came when U.S. officials from various agencies met and agreed on Wednesday to alter the Foreign Direct Product Rule, which subjects some foreign-made goods based on U.S. technology or software to U.S. regulations,” Reuters’ sources said.
Only time will tell how much of an impact the change will have, but U.S. officials will likely consider any impact a win.