Date
23 August 2019
US export licenses to American firms for renewed supply deals with China's Huawei are likely to be on a case-by-case basis. Photo: Reuters
US export licenses to American firms for renewed supply deals with China's Huawei are likely to be on a case-by-case basis. Photo: Reuters

US firms may get nod to restart Huawei sales in a month: report

The US may approve licenses for companies to restart new sales to China’s Huawei Technologies in two to four weeks, Reuters reports, citing a source familiar with the matter.

According to the report, the license approvals could be made on a case-by-case basis, at least at first, as the US Commerce Department seeks to form more broad opinions on the issue.

Huawei was added to a list in May that prohibits US companies from supplying it with new American-made goods and services unless they obtain licenses.

Late last month, after meeting with Chinese leader Xi Jinping, US President Donald Trump announced that American firms could sell products to Huawei.

And in recent days, US Commerce Secretary Wilbur Ross said licenses would be issued where there is no threat to national security.

Trump’s reversal, and rapid implementation by the Commerce Department, suggests chip industry lobbying, coupled with Chinese political pressure, may well reignite US technology sales to Huawei, the report said.

Two US chipmakers who supply Huawei told Reuters in recent days they would apply for more licenses. 

A Commerce Department spokesman said the agency is “currently evaluating all licenses and determining what is in the nation’s best national security interest.”

US officials have sought to clarify the new policy in recent weeks, saying they will allow sales of non-sensitive technology readily available abroad if national security is protected.

But they have also reiterated that Huawei remains on the entity list, and relief would be temporary.

The United States has pending cases against Huawei for allegedly stealing American intellectual property and violating Iran sanctions.

It also has launched a lobbying effort to persuade US allies to keep Huawei out of next-generation 5G telecommunications infrastructure, citing concerns the company could spy on customers.

Huawei has denied the allegations.

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RC

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