US Tech Companies Sidestep a Trump Ban, to Keep Selling to Huawei

Apparently, a number of the US’ biggest chip makers have sold millions of dollars of products to Huawei despite a Trump administration ban on the sale of American technology to the Chinese telecommunications company. Since the Commerce Department enacted the ban in May, American companies including Intel and Micron have found ways to sell technology to Huawei. The components began to flow to Huawei about three weeks ago. Goods produced by American companies overseas are not always considered American-made, and the suppliers are taking advantage of this. The sales will help Huawei continue to sell products such as smartphones and servers. The deals underscore how difficult it is for the Trump administration to clamp down on companies that it considers a national security threat, like Huawei. They also hint at the possible unintended consequences from altering the web of trade relationships that ties together the world’s electronics industry and global commerce.

American companies may sell technology supporting current Huawei products until mid-August. But a ban on components for future Huawei products is already in place. It’s not clear what percentage of the current sales were for future products. The sales have most likely already totaled hundreds of millions of dollars. While the Trump administration has been aware of the sales, officials are split about how to respond, apparently.