Saturday, December, 14, 2019 12:04:38

United States may start approving license for certain U.S. based companies to restart selling their products to Huawei, the Chinese tech giant, by the next 2-4 weeks. Reportedly, the initiative is taken by the U.S. President Donald Trump to ease restrictions on Huawei, cite reliable sources.

After a meeting with Xi Jinping, the Chinese President, Donald Trump announced last month that American firms could sell products to Huawei. Also, U.S. Commerce Secretary Wilbur Ross reportedly said that the licenses will be issued only in cases where there is no threat to national security.

For the record, Huawei is one of the largest telecommunications equipment makers in the world and in May, the company was added to the U.S. Commerce Department list that prohibited U.S. companies from supplying new American-made goods & services to Huawei, unless they obtained licenses, which were likely to be denied by the U.S. government earlier.

According to credible sources, the reversal of the charges by the American President, along with a quick implementation by the Commerce Department implies chip industry persuasion coupled with political pressure from China. Altogether, this is expected to reignite U.S. technology sales to Huawei.

A Huawei spokesman reportedly said that instead of having temporary licenses applied for U.S. vendors, the Entity list restrictions should be removed completely. He added that Huawei has not been found guilty of any wrongdoing, poses no cyber security risk for any country and the restrictions imposed are completely unjust.

As per sources close to the matter, a firm that simulates cross-sectional radar for the Chinese tech giant & a customer response management company will also probably file applications in the coming weeks.

For the record, after security threat allegations were made against Huawei, U.S. companies were allowed to maintain existing networks but were prohibited from selling new goods and services. However, not all American sales to Huawei could be controlled by the government as many of them were beyond the scope of U.S. export control by being manufactured abroad.

Source credits: https://www.smh.com.au/world/north-america/us-firms-may-begin-selling-to-huawei-again-in-2-4-weeks-official-20190715-p52791.html