WASHINGTON (Reuters) – U.S. regulators are open to making changes to close what some see as a loophole in a new rule aimed at curbing global chip sales to blacklisted Chinese telecoms equipment maker Huawei Technologies Ltd, two U.S. officials said on Wednesday.
The Huawei logo is seen on a communications device in London, Britain, January 28, 2020. REUTERS/Toby Melville
The new rule, unveiled by the Commerce Department on Friday, expands U.S. authority to require licenses for sales to Huawei of semiconductors made abroad with U.S. technology, vastly expanding the department’s reach to halt exports to the world’s No. 2 smartphone maker.
But the rule only includes chips designed by Huawei and does not cover shipments if they are sent directly to Huawei’s customers. Some industry lawyers see this as a significant loophole.
Asked on Wednesday about the potential for adjusting the rule to close that gap, State Department assistant