US Commerce Secretary Wilbur Ross said that the United States is planning on stepping up the conditions of the trade ban against Huawei. Just recently Huawei founder Ren Zhengfei said that it was expecting that the U.S will lock down harder on Huawei but the company has the capacity to survive against tougher conditions.
It seems that Zhengfei was right as according to Ross the new terms and conditions are “works in progress that will come out near-term.”
As of yet, we do not know when the new conditions will come into effect. The US Commerce Department has planned to raise the threshold for products that are excused from being sold to the Chinese tech giant, Huawei.
Presently, the US companies have been given permission to export products and components to Huawei that have over 75% of IP and work done outside of the U.S. But it is expected that the government will surge the bar to 90%, narrowing the products list that can be exported.
It is important to mention here that the U.S government is working on a separate regulation that will impact the products designed in the US but manufactured overseas.
It is true that the U.S is making survival harder for Huawei but it is making the company self-sufficient. In the local market, the sales of Huawei increased at the end of 2019 and it is expected that they will further increase in 2020.