The Pentagon is poised to reverse its opposition to a proposal that would further crack down on U.S. exports to blacklisted Chinese telecommunications firm Huawei
Cabinet-level officials, including Commerce Secretary Wilbur Ross, Defense Secretary Mark Esper and Treasury Secretary Steven Mnuchin are expected to meet on Feb. 28 to discuss the rule and how to proceed with other export-control issues related to China.
The Defense Department's undersecretary for policy, John Rood, has overruled those concerns, the people said.U.S. semiconductor companies found other ways around the blacklisting, including supplying Huawei through subsidiaries or partners in foreign countries. “While many companies believe their U.S. content is far below 25 percent, 10 percent is a different animal,” said a person close to the issue.
Huawei was placed on Commerce’s entity list last year prohibiting U.S. companies from supplying the Chinese telecom manufacturer with semiconductors and other components. Some companies have been granted temporary exemptions to continue a limited amount of business.
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