Huawei restricted from using US suppliers

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Huawei restricted from using US suppliers
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China's Huawei is now blacklisted by the United States and business dealings with American companies will be a bane.

Huawei is now banned from buying parts and components from American firms without US government approval.

Obtaining such approval will not be easy. The US government will review license applications under a “policy of presumption of denial,” according to a posting on the Federal Register. The action comes as the world’s two largest economies ratchet up tariffs in a battle over what US officials call China’s unfair trade practices.

The Commerce Department first gave notice on Wednesday that it was adding Huawei to the list. Huawei has been “involved in activities contrary to the national security or foreign policy interests of the United States,” the order says. Members of Congress and administration officials said the move would make it difficult for Huawei to sell many products because of its dependence on US suppliers.Washington lawyer Douglas Jacobson, a trade expert, said there would be collateral impact on the US companies that sell to Huawei.

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