New regulations for Huawei’s U.S. suppliers are coming soon

US Secretary of Commerce Wilbur Ross said that new regulations for Huawei’s US suppliers are coming soon, and these new regulations will impose more restrictions on these suppliers.

In May 2019, Huawei was included in the list of entities in the United States, which led to many U.S. suppliers discontinuing supply. However, many US companies legally bypassed this restriction and continued to supply Huawei.

The United States stipulates that if a U.S. company can prove that most of the production of a product occurs outside the United States, these products can be exempted from the ban . The ratio is 75%, which means that when 75% of the work occurs outside the United States, the product is not restricted.

The new regulations will increase this ratio to 90%, people familiar with the matter said that the new regulations will be approved soon.

Ross said that this is not to cut off Huawei’s relationship with US suppliers, but to protect national security.