Proposed changes to further limit American shipments to Huawei have been delayed amid arguments they could backfire.
By Ana Swanson, Jan. 24, 2020 Updated 2:53 p.m. ET, nytimes.com
WASHINGTON — The Trump administration has temporarily shelved a proposed rule change that would further restrict American sales to Huawei, the Chinese telecom giant, after some officials in the Defense Department and other agencies argued that the measure, which was intended to protect national security, could actually undermine it, according to people familiar with the matter.
The rule change, which multiple government agencies were reviewing, would close a loophole that allowed technology companies like Intel and Micron to continue shipping chips, software and other products to Huawei despite a ban that prevented the Chinese company from buying some American products.
Some government officials have objected to the tougher restrictions, arguing they could discourage the use of American components abroad, weakening American firms and the country’s technological competitiveness.
The rule has been withdrawn from the Office of Management and Budget, effectively putting the tighter limits on hold. The change, along with other China technology issues, will be discussed in a meeting of President Trump’s top advisers, though a date has yet to be set, one of the people said.