Pentagon Blocks Clampdown on Huawei Sales

The Commerce Department’s efforts to tighten the noose on Huawei is facing a formidable obstacle: the Pentagon. Apparently, Commerce Dept officials have withdrawn proposed regulations making it harder for US companies to sell to Huawei from their overseas facilities following objections from the Defense Department as well as the Treasury Department. The Pentagon is concerned that if US companies can’t continue to ship to Huawei, they will lose a key source of revenue—depriving them of money for research and development needed to maintain a technological edge. The Treasury Dept wanted to make sure that Sec Steven Mnuchin had a chance to weigh in. Cabinet officials are expected to meet on Huawei and other China issues in the coming weeks.