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US technology companies are finding loopholes to continue sales to Huawei despite the current ban imposed by the White House.
Reports from sources mentioned in the New York Times suggest that major US tech corporations like Intel and Micron have managed to bypass the ban and are still supplying millions of dollars’ worth of products to the Chinese tech and telecom conglomerate.
Even though the sale of American technology to Huawei is restricted, there are complexities regarding goods manufactured by US companies overseas. Such goods are not classified as “American made” and can be legally exported to Huawei. The sources speaking to the Times opted to remain anonymous as they were not authorized to disclose details about these transactions.
While Huawei faces setbacks and repercussions from the ban, these actions highlight the challenges of enforcing protectionist measures in a globalized market. Targeting specific companies like Huawei can have unintended consequences given the interconnected nature of the tech industry. Huawei, much like American tech giants, depends on the global supply chain as tech components are often sourced from multiple manufacturers.
Currently, it seems that Huawei will be able to continue selling its flagship products, including smartphones. The Trump administration is cognizant of these ongoing sales, but opinions among top US officials are divided on how to respond to the situation. Some officials view these circumventions as undermining the government’s stance against Huawei, while others show understanding towards US tech companies, seeing these sales as mitigating the impact on American businesses. Huawei usually procures around $11 billion worth of tech products from the US annually.