Will U.S. to Issue Licenses for Supply of Non-Sensitive Goods to Huawei?

 

Huawei Technologies Co Ltd, the world’s biggest telecoms gear maker, has been put on a U.S. trade blacklist since May, when trade talks between Washington and Beijing broke down. The United States says the company can spy on users, which Huawei denies. The blacklisting prevented Huawei from buying parts and components from U.S. companies without U.S. government approval, constraining its access to essential technologies particularly Google Mobile Services.

 

U.S. companies can seek a license for particular products to be exempted from the ban. The U.S. Commerce Department has accepted more than 130 applications from companies for licenses to sell U.S. goods to Huawei, Reuters reported in August. Government officials advised U.S. companies to apply for licenses following U.S. President Donald Trump’s pledge of relief, saying exports to Huawei of non-sensitive items that are readily replaced by foreign competitors would be permitted.

 

Trump's administration gave the green light last week to start approving licenses for a few American companies to bypass the curbs, the New York Times said nyti.ms/35pED2e, stating people familiar with the matter. A U.S. Commerce Department spokesman told Reuters that no official direction has been granted to the department on the matter as of Wednesday afternoon.

 

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