US Firms Could Resume Trade With Huawei In Two Weeks
The United States threw the tech world in a frenzy in May when the Department of Commerce decided to add Huawei to its Entity List. This addition restricted American companies from doing business with Huawei over national security concerns. Following this addition, US suppliers suspended their business with the company. However, on the outskirts of the G20 summit in Japan last month, President Trump announced that US companies would be allowed to trade normally with the Chinese smartphone and network equipment manufacturer. Today we've got more details on the matter so take a look below for more.
American Companies Might Resume Trading Normally With Huawei Within Two To Four Weeks Claims Report
Wall Street took a sigh of relief after President Trump's announcement, despite the fact that he did not share a timeline for the easing of trade relations between Huawei and its American suppliers. Now, the ever-reliable Reuters is quoting an unnamed US government official with details about the timeline of license approval for US companies seeking trade with Huawei.
The details suggest that the licenses for trading with Huawei might be approved in two weeks from now. It's important to keep in mind that these developments do not suggest that the US is removing Huawei from the Department of Commerce's entity list. Instead, the licenses that American companies are applying for fall under the new guidelines for trade with the Chinese company.
These licenses, if granted by the government will allow American companies to make new sales to Huawei. Currently, Huawei's suppliers such as Google and Intel are limited to providing upgrades for the company's existing products. Commenting on the situation, a Huawei spokesperson said, "the Entity list restrictions should be removed altogether, rather than have temporary licenses applied for US vendors. Huawei has been found guilty of no relevant wrongdoing and represents no cybersecurity risk to any country so the restrictions are unmerited."
A Commerce Department official clarified the Department's position to an unnamed company official seeking a trading license with Huawei by stating, "[the Department is] currently evaluating all licenses and determining what is in the nation’s best national security interest.” While approving licenses for trade with Huawei will prove beneficial for American companies, it's unlikely that the US government will remove the company from its Entity List without security assurances and before gaining concessions from China.
Thoughts? Let us know what you think in the comments section below and stay tuned. We'll keep you updated on the latest.
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