Huawei has found an unexpected ally in its ongoing battle in the United States in the form of the Pentagon.
Both the Pentagon and US Department of Defense have objected to restrictions placed on the Chinese technology giant which have restricted access to American-made hardware.
The Pentagon feels that these news blocks would mean that the American companies could be deprived of the money by selling components to Huawei. This money can be used for R&D and other much needed technological enhancements.
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The United States Department of Commerce has put the proposal on hold and President Trump’s administration now plans to discuss the same in a high-level meeting to discuss this week.
The current regulations state that high-tech products and components shipped to China from other countries with 25% or less US-made components may not need a license. This limit was being brought down to 10% making it virtually impossible for Huawei to source US-made components.
The US Department of Commerce had recently proposed added restrictions on American exports to the company and even aimed at including products like consumer electronics and non-sensitive chips to the scope of existing restrictions. This would’ve made it harder for Huawei to buy components from American companies.
Huawei has been accused of spying due to alleged close links with the Chinese government and has been put under a trade blacklist since May 2019. Huawei, though, has denied these allegations and maintained its innocence
The sanctions placed by the United States and other countries on Huawei have resulted in a trade war-like scenario with China. The company has been barred from selling 5G equipment to the US and its allies despite claiming to be far ahead in terms of 5G research and implementation.
The trade war has also resulted in Huawei being barred from using Google’s Android operating system Android on its phones.
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