China's telecoms giant Huawei has been encouraging its suppliers to violate...
- China’s telecoms giant Huawei has been encouraging its suppliers to violate U.S. law by telling them to move operations offshore in a bid to avoid U.S. sanctions, Commerce Department Secretary Wilbur Ross told Reuters on Tuesday.
In May, the U.S. government placed Huawei Technologies Co Ltd on a trade blacklist known as the entity list, over national security concerns, forcing some suppliers to apply for special licenses to sell equipment to the company. On Tuesday, Ross said in an interview that those frustrations extended to a push from Huawei to move its supply chain overseas.
One of those regulations, known as the De minimis Rule, dictates how much U.S. content in a foreign-made product gives the U.S. government authority to block an export. Currently the de minimis threshold for China is set at 25%, meaning that if American content constitutes more than a quarter of the value of the item, U.S. rules apply to its export to China.
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