In recent news coming from the states it has been found that the US Commerce Secretary, Wilbur Ross has told Bloomberg that the United States of America have set plans to further harden the conditions of the trade ban which has been set against the Chinese manufacturers Huawei.
As of last week, Huawei founder Ren Zhengfei had told the media that it was expecting the US to impose hardened sanctions on the company, however Huawei has the capacity to survive against such hostile relations and that they will do what they have to do in order for their consumers to be satisfied. As God would have it, the giants head was right on the bull and as per Ross, the new terms and conditions are “works in progress that will come out near-term.”, which basically means that Huawei can expect hostility in the near future, if they already didn’t have enough on their plate, get ready to get some more.
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So far there is no news as to when these conditions will be put into effect, nonetheless, Bloomberg’s sources have predicted that the US Commerce Department is planning to raise the threshold for products that are exempted from being sold to the Chinese tech giant. As it stands, US companies have been given the green light to export products and components to Huawei that have more than 75 percent of IP and work done outside of the US. However, it is expected that the Trump government will raise the bar to 90 percent, narrowing the list of products that can be exported.
Moving on, it was also revealed that the US governance have been working on a separate regulation which will in turn affect the products designed in the US but manufactured overseas and even though the US has been giving Huawei a pretty hard time, this is turning the company into a more self-reliant OEM. It should be noted that because of such sanction, Huawei’s sales in the local market spiked at the end of 2019 and experts have predicted that these sales are bound to see another increase in 2020.