U.S. firms may get nod to restart Huawei sales in two-four weeks

  • 17/07/2019
U.S. firms may get nod to restart Huawei sales in two-four weeks

As reported by a senior US official, the United States can accept licenses for firms to resume Huawei’s latest sales in just two weeks, indicating that the recent attempt by President Donald Trump to relax limitations for a Chinese firm can sharply record a progress.

Huawei, the world's largest manufacturer of telecommunications equipment, was listed in Commerce Department in May, which bans American firms from providing with American-made products and services to them, unless they receive a license, that will possibly be rejected.

However, at the end of last month, since the meeting with Chinese President Xi Jinping, President Donald Trump stated that US companies could sell Huawei goods.
Trump’s abolition and quick enforcement by the Department of Commerce suggests that lobbying for the chip industry, mated with China’s political tension, could lead to a resumption of US sales to Huawei’s technology.

Two US chip makers that supply Huawei have told Reuters in last days that, after Ross’s comments, they will request for more licenses. They wanted to be kept anonymous.
Craig Ridgley, a trade requirements consultant in Washington, says that a customer response management company and a firm that models cross-section radar for Huawei can also apply in the nearest future.

Of the 70 billion dollars that Huawei spent on the purchase of components in 2018, about 11 billion dollars fell to US firms, involving Qualcomm (QCOM.O), Intel (INTC.O) and Micron Technology (MU.O).

According to Washington lawyer Kevin Wolf, a former Commerce Department official, firms definitely submitted applications, demanded by the rules, as there were no flaws.
A Huawei spokesman said “the Entity list restrictions should be removed altogether, rather than have temporary licenses applied for US vendors. Huawei has been found guilty of no relevant wrongdoing and represents no cybersecurity risk to any country so the restrictions are unmerited.”

Currently, US firms can sell goods to hold current networks and offer software upgrades for existing Huawei phones, but they are not allowed to make new sales of products and services of American origin.

In addition, not all Huawei sales in the United States depend on government approval of license requests. Some US manufacturers of Huawei chips may not need licenses, since their products may go beyond the US export controls, as many of them are produced abroad with a small number of components in the US.

Recently, US officials aimed to clear up the modern policy, stating that they will sell insensitive technology that is easily reached abroad if national safety is secured. But they also confirmed that Huawei still stays on the list of organizations, and the assistance will be short lived.

The US semiconductor industry is lobbying for wider relief, arguing that US security objectives must be developed in such a way as not to weaken the ability to race in the global market and maintain technological leadership. Suppliers want them to be permitted to supply with customer service for chips that they produce and sell abroad, or to allow them to supply American equipment made by Huawei and its subsidiaries worldwide.

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