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US announces massive relaxation of ban on Huawei

Manny Pham
July 10, 2019

US companies were banned from selling technology to Huawei which had the Chinese vendor revising its forecasts

The US government will start issuing licences to US companies looking to sell equipment to Huawei that are deemed not a risk to national security.

In a report from Reuters, Commerce secretary Wilbur Ross made the announcement yesterday (July 9) at a conference in Washington. But he did not state specifics.

The US is currently looking to resuscitate trade talks with China after president Donald Trump announced last month US firms such as Google will be allowed to sell to Huawei again.

Since the ban was actioned Huawei founder Ren Zhengfei announced the firm predicted billions of pounds lost in revenue and a massive drop in smartphone sales.

Huawei was placed on an entity-list that highlights companies that are deemed a national security concern to the US. Meaning a special licence is required to sell US parts to those on the list.

Ross said the prerequisites needed to attain a special licence will not change but leaves the door open to more approvals.

“To implement the president’s G20 summit directive two weeks ago, Commerce will issue licenses where there is no threat to US national security”, said Ross.

“Within those confines, we will try to make sure that we don’t just transfer revenue from the US to foreign firms.”

Washington trade lawyer Doug Jacobson said: “The actual policy, of what is not going to endanger US security, is not clear.

“The only way that industry can determine the line is by submitting (license) applications and knowing what types will be approved and which types will be denied.”

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