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US firms circumventing ban on sales sales to Huawei: report

By AFP
media A news report said some US firms are finding ways to sell components to Chinese tech giant Huawei despite a ban imposed by President Donald Trump AFP/File

American technology firms are still selling components to Chinese technology giant Huawei despite a ban imposed by President Donald Trump on national security grounds, the New York Times reported Tuesday.

The report, citing unnamed sources, said US chip makers and others have found ways to continue sales, getting around the sanctions by selling goods made outside the United States.

According to the report, the products from American companies overseas are being considered exempt from the prohibition, and could allow Huawei to continue to sell products such as smartphones and servers.

The Commerce Department did not immediately respond to a request for comment.

John Neuffer of the Semiconductor Industry Association, a US-based trade association, said in a statement last week that its members "are committed to rigorous compliance" with the sanctions, but noted that "it is now clear some items may be supplied to Huawei" based on the law.

"Each company is impacted differently based on their specific products and supply chains, and each company must evaluate how best to conduct its business and remain in compliance," Neuffer said.

Huawei founder and CEO Ren Zhengfei said earlier this month that its overseas smartphone sales had fallen by up to 40 percent as a result of the ban.

Trump's administration has essentially banned Huawei from the huge US market.

Last month it also added Huawei to an "entity list" of companies barred from receiving US-made components without permission from Washington.

The US fears that systems built by Huawei could be used by China's government for espionage via secret security "back doors" built into telecom networking equipment, allegations vigorously denied by the firm.

 
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