U.S. lawyer says loopholes in new rules on Huawei’s export controls

U.S. regulators are willing to make changes to fill a loophole in a new rule that limits new chipmakers from supplying chips to Huawei, two U.S. officials said on Wednesday, Reuters reported. The U.S. Commerce Department announced new rules Friday requiring semiconductor chips made from U.S. technology to obtain U.S. licenses before supplying them to Huawei.

U.S. lawyer says loopholes in new rules on Huawei's export controls

But the rule includes only chips designed by Huawei and does not include shipments sent directly to Huawei customers. Some industry lawyers see this as a major loophole.

Asked Wednesday about the possibility of changing the rules to close the loophole, Christopher Ashley Ford, a State Department official, said the rules themselves would give regulators a chance to decide whether they should be changed.

The rule will “provide us with a wealth of information as we move forward and try to find the right answers to these challenges, and provide the basis for our export control decisions, including adjustments to regulations if necessary , if Huawei tries to circumvent our rules in some way.” “

He added that regulators would look into it and “certainly make any changes we deem necessary”.