London Daily

Focus on the big picture.
Thursday, Oct 01, 2026

US preparing to block more sales to Huawei: Report

US preparing to block more sales to Huawei: Report

Trump administration wants to put more pressure on the Chinese telecoms giant, accusing it of threatening US security,

The United States government is nearing the publication of a rule that would vastly expand its powers to block shipments of foreign-made goods to China's Huawei, as it seeks to squeeze the blacklisted telecoms company, two sources told the Reuters news agency.

The US Commerce Department in May placed Huawei Technologies Co Ltd on a trade blacklist, citing national security concerns. That allowed the US government to restrict sales of US-made goods to the company and a small number of items made abroad that contain US technology.

Under current regulations, key foreign supply chains remain beyond the reach of US authorities, raising frustration among China hawks within the administration and a push to expand US authority to block more shipments to Huawei.

But US businesses say an effort to enable the government to regulate more sales to Huawei to include low-tech items made overseas with very little US technology could end up needlessly hurting US companies while encouraging Huawei to source more goods abroad.

Reuters reported in November that the Commerce department was considering broadening the De minimis Rule, which dictates how much US content in a foreign-made product gives the US government authority to regulate an export.

Under current regulations, the US can require a licence or block the export of many hi-tech products shipped to China from other countries if US-made components make up more than 25 percent of the value.

According to two people familiar with the matter, Commerce has drafted a rule that would lower the threshold only on exports to Huawei to 10 percent and expand the purview to include non-technical goods such as consumer electronics including non-sensitive chips.

According to one of the people, the Commerce Department sent the rule to the Office of Management and Budget, following an interagency meeting last week.

If other government agencies sign off on the measure, the rule could be issued in a matter of weeks as a so-called final rule, with no opportunity for public comment before it goes into effect, the people said.


Widening the net


Commerce has also drafted a regulation that would expand the so-called Foreign Direct Product Rule, which subjects foreign-made goods that are based on US technology or software to US oversight. This would be broadened to include low-tech items made abroad that are based on US technology and shipped to Huawei, the people said.

The controversy surrounding Huawei is an additional source of friction between the US and China, as the world's top two economies continue to engage in their trade war. The two sides are due to sign a Phase One trade deal on Wednesday, but many of the US's accusations against China - including the allegation that Beijing forces foreign companies to hand over key technology in return for market access - remain unresolved.

The Trump administration has tried to convince Washington's allies to steer clear of Huawei gear in next-generation 5G mobile telecommunications network buildouts, citing the potential for the telecoms giant to include "backdoor" security vulnerabilities that could allow China to spy on Western networks - a charge Huawei has vigorously denied.

British Prime Minister Boris Johnson said on Tuesday that Huawei's critics should suggest alternative equipment providers, but then added he would not risk the United Kingdom's security when upgrading the nation's 5G communications network.

Huawei responded, saying it was confident the UK would assess the evidence in deciding whether its equipment should be deployed in 5G networks.

A decision is expected this month on whether to allow Huawei to supply some "non-core" parts for the UK network.

Victor Zhang, vice president of Huawei, said the company strongly agreed with Johnson that "the British public deserve to have access to the best possible technology."

"We are confident that the UK government will make a decision based upon evidence, as opposed to unsubstantiated allegations," he said in a statement.

He added: "Two UK parliamentary committees concluded there is no technical reason to ban us from supplying 5G equipment and this week the head of MI5 said there is 'no reason to think' the UK's intelligence-sharing relationship with the US would be harmed if Britain continued to use Huawei technology."

In December, Huawei, the world's largest smartphone maker, reported an 18 percent jump in revenue for 2019 and a 20 percent increase in shipments of smartphones.

Newsletter

Related Articles

0:00
0:00
Close
Southwest England Faces Flood Alerts After Heavy Autumn Storms
UK Expands Funding for Rapid Electric Vehicle Charging Infrastructure
Welsh Government Approves Funding to Upgrade South Wales Transport
Northern Ireland Tensions Rise as Orange Order Rejects Drumcree Compromise
NHS Leaders Back Early Design of Proposed National Care Service
More Than One-Third of Regional UK Universities Face Financial Deficits
UK Current Account Deficit Narrows as Cross-Border Financial Flows Remain Strong
Bank of England and FCA Issue New Rules for Stablecoins and Digital Assets
MI5 Warns UK Universities Over Research Links With Chinese Institutions
UK Energy Price Cap Rises 4% as Electricity VAT Is Temporarily Suspended
Equity Calls for UK Personality Rights to Protect Performers From AI Replication
OpenAI Pauses Advanced Model Training Following Safety Concerns
Scottish Government Proposes Replacing 32 Councils With Larger Regional Authorities
Ofgem Raises UK Household Energy Price Cap by 4% From October
UK Counter-Terrorism Police Continue Investigation After Five Arrests Near RAF Fairford
OECD Cuts UK 2027 Growth Forecast to 1%
Labour Says State Pension Triple Lock Remains Protected Through Current Parliament
Andy Burnham Pledges National Care Service With Free Social Care in England
Six Flags Permanently Shuts Landmark X2 Roller Coaster Following Safety Scandals
Metropolitan Police Rule Out Terrorism in Golders Green Stabbing Investigation
Lithium-Ion Battery Identified as Cause of Fatal Merseyside House Fire
UK Department Rejects New Sea Use Framework Due to Stakeholder Fatigue
Major Thames Water Pipe Burst Causes School Closures in London
Aldi Commits £900 Million to Expand UK Supermarket Network
Scottish Affairs Committee Warns Skills Shortages Threaten Defence Sector Expansion
Parliamentary Committee Warns Northern Ireland Budget Deadlock is Stalling Economic Growth
NHS Hospitals in England Face Severe Shortages of Essential Medications
Home Secretary Signals Major Overhaul of UK Immigration and Leave to Remain Policies
Chancellor Promises New Job Schemes Alongside Strict Fiscal Discipline
Energy Secretary Proposes Taxpayer-Funded Green Transition and National Electricity Grid
UK Government to Renationalise Avanti West Coast Railway Franchise in March
Prime Minister Andy Burnham Pledges Major Social Care and Infrastructure Reforms
Five Suspects Released on Bail Following Alleged Bomb Plot Near RAF Fairford
UK Diesel Prices Hit Record High of 199p Per Litre
Transport for Wales and Network Rail Complete Electrification of South Wales Metro
Defra Expands Incentives for Sustainable Farming and Biodiversity in England
Northern Ireland Executive Approves Funding Package to Resolve Public Sector Pay Disputes
Universities UK Warns of Financial Insolvency Risks for Higher Education Institutions
UK Prisons Activate Emergency Protocols to Manage Capacity Pressures
UK Government Establishes New Safety Standards for Frontier AI Models
Home Office Tightens Skilled Worker Visa Requirements and Dependent Rules
Ministry of Defence Restructures Royal Navy Frigate Procurement to Prevent Overruns
UK Government Mandates New Housing Targets to Address National Shortage
UK and Scottish Governments Reach Agreement on North Sea Energy Transition
NHS Launches Digital Overhaul to Reduce Surgical Backlogs in England
Bank of England Holds Interest Rates as Service Sector Inflation Persists
UK Chancellor Announces Fiscal Consolidation Measures to Stabilize National Debt
RNLI Chief Executive Condemns Misinformation and Abuse Targeting Volunteer Crews
Metropolitan Police Charge Swindon Man with Assisting Foreign Intelligence Services
British Intelligence Report Warns Environmental Collapse Threatens Global Defense Infrastructure
×