Rumor: US government wants to be able to block more trade with Huawei

The United States government reportedly wants to be able to block more trade from companies outside the US with Huawei. It changes a rule for that. It is still unknown what the consequences of the adjustment will be.

Currently, the US government can block trade between companies from other countries if US technology represents 25 percent of the value. For trade with Huawei, the US wants to lower that limit to 10 percent of the value, Reuters reports.

Thanks to the adjustment, the US wants the trade ban for American companies with Huawei to affect the Chinese company more. Currently, companies from countries other than the US can trade with Huawei as long as the value of US components therein does not exceed 25 percent.

According to Reuters, the US government wants to make the new rule public soon and then it will take effect almost immediately. The trade ban for American companies with Huawei has been in place since May and has already had many consequences. For example, Huawei cannot release new models of smartphones with Google apps in Europe. The US government has licensed several companies to trade with the Chinese manufacturer, including Microsoft.