The US government proposed changing regulations to give it the authority to block global chip sales to Huawei, in what would be a major escalation in trade restrictions on the Chinese vendor, Reuters reported.
A proposal to change the Foreign Direct Product Rule, which subjects certain overseas-made goods made with US technology to its regulations, was drafted but is among several options to be considered, Reuters added.
If the change is approved, non-domestic companies using US technology would need a licence to supply components to Huawei.
Companies including Taiwan-headquartered TSMC, which makes chips for Huawei’s HiSilicon unit, would be impacted, the news agency said.
Last month, the US Department of Commerce (DoC) halted plans to expand the terms of a similar trade ban due to concerns about the potential impact to domestic businesses.
Huawei was added to an economic blacklist in May 2019. Last week, the DoC again issued a 45-day extension to a temporary trading licence, allowing US companies to continue to do business with the vendor, the latest in a series of postponements to implementing a trade ban.
In addition to moves to tighten trade controls, the US Department of Justice last week expanded legal action against the company, filing charges accusing it of racketeering and conspiring to steal trade secrets from six technology companies.Subscribe to our daily newsletter Back