U.S. to ease blacklisted Huawei ban of sales

10 Jul, 2019 15:01
source: Singularity Financial

On Tuesday Wilbur Ross, the commerce secretary, said that Washington would issue licences to companies to sell their products to the Chinese telecoms equipment maker under certain conditions.

Seeking to revive trade talks with China, President Donald Trump announced last month that American companies would be allowed to sell products to Huawei, the world’s largest telecommunications equipment maker.

Mr Ross said: “To implement the presidents G20 summit directive two weeks ago, Commerce will issue licences where there is no threat to US national security.

But he clarified that Huawei would not be removed from the so-called entity list, and that companies would still need to apply for a licence.

American technology companies have been lobbying the administration, saying that the ban will cut them off from a major source of revenue, while doing little to hold back Huawei’s technological advancement, since Huawei will merely purchase some less-advanced components from competitors in Japan, South Korea or elsewhere instead. The move marks a major victory for technology companies that have been lobbying hard to continue selling to Huawei.

However, there is no messages related to how long the relaxation to the ban would last,Leaving open the possibility that licences could dry up once more if there is no progress in the trade talks.