USA to issue licenses for supply of non-sensitive goods to Huawei

Galtero Lara
Octubre 10, 2019

Huawei Technologies, the world's biggest telecoms gear maker, has been put on a US trade blacklist since May.

USA companies will soon be able to supply non-sensitive goods to China's Huawei.

Ltd., the world's biggest telecoms gear maker, has been put on a US trade blacklist since May, when trade talks between Washington and Beijing broke down. The ban prevented USA companies such as Google from selling components and providing software updates to Huawei without government approval.

However the New York Times says the USA government is now ready to give the thumps up, urging firms dealing in non-sensitive items that would be easily substituted for a foreign alternative to apply.

A license to do business with Huawei would allow companies to sidestep a ban his administration had placed on Huawei earlier this year, CNET reported quoting The New York Times.

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As of August, over 130 applications have reportedly been submitted to the Commerce Department for licenses to sell United States goods to the Chinese tech giant.

Trump's administration barred trade with Huawei and dozens of its partners in May, accusing them of spying for the Chinese government and posing a risk to national security. The Commerce Department told the Times, "as of right this moment, the status quo holds".

The licensing decisions would give much needed clarity to American companies, which have been looking for guidance since Trump promised in late June to provide some relief to firms that did business with Huawei. Tensions mounted after USA administration expanded its blacklist on Monday by adding 28 Chinese entities, including top artificial intelligence startups, over human rights concerns.

It's unclear if any USA companies have actually received licenses to deal with Huawei in the wake of the announcement though.

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