Washington Weighs Another Crackdown As Germany Reportedly Plans To Snub US And Side With Huawei

One day after the Pentagon and, by extension, the White House sent an unmistakable warning to the UK, Germany, the rest of America's European allies and - most importantly - Huawei and the Chinese regime, it appears the Pentagon is already moving to make it much more difficult for American manufacturers to sell their products to Huawei.

Last summer, the Trump administration loosened restrictions on Huawei stemming from the Commerce Department's decision - made earlier in the year - to add Huawei to a "black last" barring American firms from selling their products to the company. The company has technically remained on the blacklist, but the export ban was, for the most part, not enforced (Commerce only intervened if it was a matter of important national security).

The decision comes not long after the UK decided to allow Huawei parts in "non-core" elements of its national 5G network.

But according to Politico, the Trump Administration and the Pentagon are conspiring once again to tighten the screws on the Chinese telecom behemoth. A meeting to discuss the proposed policy change is reportedly being held on Wednesday, and will include a smattering of cabinet members and other administration officials.

Pentagon undersecretary of policy John Rood is reportedly overseeing the new policy and has overruled concerns about potential blowback to American semiconductor firms.

The Defense Department's undersecretary for policy, John Rood, has overruled those concerns, the people said.
Defense and Commerce did not immediately respond to requests for comment.

U.S. semiconductor companies found other ways around the blacklisting, including supplying Huawei through subsidiaries or partners in foreign countries.

Currently, a foreign-produced good that contains 25 percent U.S.-origin content can be exported to a company on the entity list. The Commerce rule would cut that threshold down to 10 percent for any goods exported to Huawei or its in-house semiconductor business HiSilicon.

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