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How U.S. companies are bypassing Trump ban to continue doing business with Huawei

Hillary Keverenge by Hillary Keverenge
June 27, 2019
in News
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Unless you just came from a cave, you’ve definitely heard of the trade ban implemented by the American government restricting business dealings between U.S. companies and Huawei.

The ban was halted temporarily to allow U.S. companies to find alternatives to Huawei, but it seems these companies have instead found ways of bypassing this trade ban and in fact, [some] business is as usual, at least according to a report by The Wall Street Journal (via Mobile World Live).

Apparently, U.S. companies have devised three ways of bypassing the Huawei ban without getting into trouble with local authorities:

  1. They’ll sell to Huawei as long as the products/components in question were made in countries outside the U.S.
  2. U.S. companies have no problem selling products to Huawei as long as less than 25% of the products’ components originate from the U.S.
  3. Some U.S. companies are classifying the products they sell to Huawei as non-domestic, which automatically exempts them from the Huawei ban.

So far, at least three American companies are already employing these tactics to continue doing business with Huawei. These are Qualcomm, Intel, and Micron Technology, and soon ON Semiconductor will join the party.

READ:  24Bit - Which way Huawei?
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