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January 24, 2020 04:18 pm

Pentagon Blocks Clampdown on Huawei Sales

The Commerce Department's efforts to tighten the noose on Huawei Technologies Co. is facing a formidable obstacle: the Pentagon. From a report:Commerce officials have withdrawn proposed regulations making it harder for U.S. companies to sell to Huawei [the link may be paywalled] from their overseas facilities following objections from the Defense Department as well as the Treasury Department, people familiar with the matter told WSJ. The Pentagon is concerned that if U.S. companies can't continue to ship to Huawei, they will lose a key source of revenue -- depriving them of money for research and development needed to maintain a technological edge, the people said. The Treasury Department wanted to make sure that Secretary Steven Mnuchin had a chance to weigh in, said one of the people. Cabinet officials are expected to meet on Huawei and other China issues in the coming weeks. The splits within the Trump administration on how to deal with Huawei show the difficulty of confronting China on technology without harming U.S. companies.

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