US pulls rule that would have made it harder for American companies to sell to Huawei

Illustration by Alex Castro / The Verge

The US Department of Commerce has pulled a potential regulation would have made it more difficult for US companies to sell to Huawei, according to sources who spoke with the Wall Street Journal, after the Pentagon and Treasury Department protested the rule.

Right now, US companies can sell chips or other electronic goods to Huawei from their overseas locations without an export license as long as those goods are made with less than 25 percent of materials or patents that aren’t made by US companies.

However, the Commerce Department had proposed a new rule to the Office of Management and Budget (OMB) that would have lowered that percentage to 10 percent. The Pentagon apparently objected to that change because it believed it would hurt US…

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Author: Jay Peters