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US Moves To Nobble Huawei As TPG & Optus Flog Questionable Huawei Gear

Both Optus and TPG are refusing to say why they are still using questionable Huawei routers and fibre connection equipment in Australian homes and businesses.

TPG’s 400Mps Fibre offering is installed using Huawei technology. “This opens a business up to real risks” claim experts.

The Chinese equipment maker has been accused of spying and being in bed with the Chinese Communist Party and The Chinese Liberation Army.

Overnight the US Trump administration moved to place restrictions on the use of US chip-making equipment used in the development of Chinese products produced by the likes of Huawei and Oppo.

Apparently, the US Federal Commerce Department is drafting changes to their foreign direct product rule, which restricts foreign companies’ use of U.S. technology for military or national-security products.

According to the Wall Street Journal the changes will allow the agency to require chip factories world-wide to get licenses if they intend to use American equipment to produce chips for Huawei Technologies according to the people familiar with the discussions.

The move is just one tools the Trump administration is prepared to use in its bid to cut China off from America’s semiconductor sector.

Semiconductor technology is a key area where China has struggled to cut its reliance on foreign suppliers despite years of effort. Semiconductors rank among China’s largest imports from the U.S.

“They don’t want any fab in the world to produce anything for Huawei—that’s the goal,” one person said, speaking of the chip fabrication plants that likely would be affected by the new trade limits.

After the U.S. last year-imposed restrictions on sales of chips to Huawei, some companies were able to continue their shipments by using a rule that allowed license-free sales to the company if products were less than 25% American-made.

The Commerce Department has proposed reducing that threshold to 10%. The Defence Department, which initially objected to the tighter limit, dropped its opposition to the plan, potentially clearing the way for it to go forward.

U.S. government officials are slated to meet Feb. 28 to discuss the reduction in the threshold and potential wider restrictions on manufacturing of chips for Chinese customers, according to a person familiar with the matter. The potential expansion of a U.S. export ban to include more Chinese companies is also on the agenda, the person said.

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