The US government may plan further sanctions for Huawei

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New forms of pressure on the producer.

According to the latest Reuters reports, the Donald Trump administration was considering exclusion of a Chinese producer from the American financial system. All this within a series of strictly political options aimed not only at prohibiting trade with the United States. Three persons drew attention to the case and were to be directly acquainted with the whole situation.

Currently featured the plan was to be shelved – it required a complicated procedure to enter Huawei on the relevant US Treasury Department list. It is not over yet. One person in a statement for Reuters said that officials are able to immediately raise the topic in case of complications or problems and launch a special procedure. The plan has already been pre-examined by the White House National Security Council, but it is seen as "nuclear" option in the context of US-China relations.

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What would happen if it was used? By signing documents Donald Trump would prevent Huawei from making any transaction in US dollars. Thus, Huawei would be on the list with companies such as Russian Rusal, as well as among Iranian politicians, Russian oligarchs and Venezuelan drug dealers. This is not a very pleasant prospect. Chinese company spokesmen for now they didn't comment on the whole situation – U.S. regulatory agencies also shun their statements.

In the whole situation there is also the other side of the coin. The ultimate US "weapon" would have serious logistic, diplomatic and economic consequences for the country. Not to mention the problems with the internet and the broadly understood network. Therefore, it is not known if officials and the president will ever decide on it.

Republican Congressman Michael Gallagher believes that all options should be on the table to put the maximum pressure on the Chinese.

It is currently unknown how this situation will proceed.

Source: reuters