The Pentagon is prone to support new U.S. restrictions on Huawei Technologies, reversing earlier opposition to a proposal meant to further crackdown on exports to the blacklisted Chinese firm, an individual briefed on the matter said Wednesday.
The withdrawal would make it harder for U.S. firms to get around the effective ban on exports to Huawei, the world’s second-largest smartphone manufacturer.
Commerce Secretary Wilbur Ross recently referred to as Defense Secretary Mark Esper to discuss the issue and a meeting is anticipated next week, the source stated.
A higher-level meeting will happen on February 28, when U.S. delegates will talk about further curbing technology exports to China and Huawei.
Politico first reported the Pentagon’s likely reversal earlier, citing individuals aware of internal deliberations.
The Defense Division didn’t reply to requests for comment.
The Trump administration added Huawei to an economic blacklist in May 2019, citing national security concerns.
In blacklisting the corporate, the U.S. authorities had stated it had a “reasonable foundation to conclude that Huawei is engaged in activities which might be contrary to U.S. national security or overseas policy interests.”
If U.S. export control guidelines are revised, trade lawyer Doug Jacobson stated it might lead to several lost sales by U.S. firms.