President Donald Trump’s administration is nearing a rule-change that would begin starving Chinese tech giant Huawei of computer chips, Reuters reported Thursday.
Members of Trump’s cabinet reportedly approved the rule-change Wednesday. Under the new policy, companies using American chip-making equipment would need to obtain a license before selling to Huawei. Because the majority of such equipment globally is American, the new policy could severely limit Huawei’s supply. (RELATED: Leaked Huawei Resumes Reveal Extensive Ties To Chinese Intelligence Agencies)
US President Donald Trump (L) and China’s President Xi Jinping leave a business leaders event at the Great Hall of the People in Beijing on November 9, 2017. (NICOLAS ASFOURI/AFP via Getty Images)
The U.S. has maintained a hostile relationship with Huawei for much of Trump’s time as president. The administration has urged global allies not to purchase Huawei’s products and the Department of Justice has indicted senior members of the company for breaking U.S. sanctions against Iran. (RELATED: Huawei Sues Verizon In Attempt To Cling To American Market)
Trump’s strategy took a blow in February after the United Kingdom began working with Huawei to build the country’s 5G network. The move lead to a scuffle between Trump and U.K. Prime Minister Boris Johnson, with Trump warning that it would harm the U.S.-U.K. intelligence relationship.
. @realDonaldTrump just called me from AF1 and instructed me to make clear that any nation who chooses to use an untrustworthy 5G vendor will jeopardize our ability to share Intelligence and information at the highest level.
— Richard Grenell (@RichardGrenell) February 16, 2020
Trump has yet to officially approve the rule-change.