Amid United States President Donald Trump's tweet last week, the US government was reported to be finding ways to prevent growing sales of US companies to China's Huawei Technologies. It was also revealed that the sale of jet engines to China was blocked by the US government.
According to Reuters, US government officials have been finding ways to further curb sales of jet engines to China's tech giant Huawei Technologies. The report claimed that during an interagency meeting last Thursday, proposals were presented to block the sale for China's new passenger airplane.
The sale of General Electric Co.'s products to the company appeared to be off the table after US President Donald Trump voiced out his disagreement on the sale on Twitter. Last Monday, an informant then claimed that new restrictions were imposed by the US government to cut Huawei off from its US suppliers.
Last week, Trump told reporters that he wanted US companies to be allowed to engage in business with Huawei Technologies. He claimed that the transaction does not involve an issue pertaining to national security such as those encompassed by the sale of chipmakers to the Chinese tech giant.
Trump also admitted that he had been very tough on Huawei and claimed that national security concerns should not be made as a basis to make it more difficult for foreign entities to purchase US products.
At present, US policymakers are divided over their stand against Huawei and China for the upcoming cabinet-level meeting. The said meeting was revealed to be on February 28, 2020, but has been postponed to a later date.
Some US officials were said to favor imposing tougher restrictions against Huawei while others were more concerned about trading with China. The report further discussed that government agencies have been finding ways to come to a consensus before the meeting commences.
Last Thursday, US officials already discussed the possible changes that would emanate from the de minimis rule. This rule manifests the intent of the US government in allowing US products to be incorporated into foreign-made items before it has acquired the authority to regulate its sale.
The US could not require a license or restrict the export of several high-tech products to China from other countries. The report revealed that about 25 percent of the value of these exports were from US-made components.
In other news, ECNS.cn reported that analysts think Huawei's engagement in Europe would be more challenging this year. They alleged that the US ban might prohibit the company from using Google-related features such as YouTube and Gmail, applications that were said to be an essential component of European users.
The report also claimed that the US restrictions and the withdrawal of Google's partnership with Huawei may discourage European customers from purchasing Huawei handsets if the restrictions persist.
