US firms find legal ways around Huawei blacklist


  • Business
  • Thursday, 27 Jun 2019

Intel still expected to power 2019 Macs. — AFP Relaxnews

San Francisco: American technology companies have resumed selling certain products to Huawei Technologies Co after concluding there are legal ways to work with the Chinese telecom giant in spite of its inclusion on a Trump Administration blacklist.

Micron Technology Inc, the largest US maker of computer memory chips, said on Tuesday that it had started shipping some components to Huawei after its lawyers studied export restrictions.

Intel Corp, the largest microprocessor maker, has also begun selling to Huawei again, according to a source.

It’s not clear how many other suppliers have reached the same conclusion.

The US Commerce Department added Huawei last month to what’s known as an entity list, a move designed to bar the Chinese company from buying American components and software.

The Trump Administration said Huawei helps Beijing in espionage and represents a security threat – charges the company denies.

Officials at Commerce and the White House are frustrated that companies have resumed Huawei shipments, according to another source.

The White House didn’t immediately respond to a request for comment.

The chipmakers are taking advantage of certain exceptions to the export restrictions.

Even when companies have headquarters in the United States, they may be able, through ownership of overseas subsidiaries and operations, to classify their technology as foreign, according to Cross Research analyst Steven Fox.

If less than 25% of the technology in a chip originates in the United States, for example, then it may not be covered by the ban, under current rules.

“It took them weeks to figure this out,” Fox said.

“What they did was look at the laws and the rules and applied them to their business.” — Bloomberg


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