The issue of Huawei being banned in the United States may not be over soon. Since the end of May, US firms have started cutting ties with the top Chinese OEM. Google started it and then other companies soon followed like Intel, Broadcom, and Qualcomm. A number of agencies like the SD Association and Bluetooth Alliance have also dropped Huawei but only to overturn their decisions. Google even eased the limits and then eventually warned the Trump government of bigger national security risks if it continues its tirades against Huawei and in a bigger picture–China.
Before the first half of the year ended, we reported Huawei could still do business with American firms. That was because the Huawei president mentioned in a press con in Japan that the US is allowing them to sell. But then again we were told Huawei is still blacklisted.
US firms need an export license to sell. The government will issue licenses to firms that want to sell to Huawei. The information was shared by Commerce Secretary Wilbur Ross. There is no definite list provided of which companies or which products that may be sold. There is an Entity List but that contains the names of companies that cannot purchase from US firms. The latter are not allowed to sell unless permission is provided.
Wilbur Ross said, “To implement the president’s G20 summit directive two weeks ago, Commerce will issue licenses where there is no threat to U.S. national security.” The statement isn’t clear but now we know the US will need to approve first if American firms can sell to Huawei.
Interestingly, Larry Kudlow, White House economic adviser said the restrictions are only in place for a limited time. There is no word through when the ban or restriction will be lifted. There is still hope but we’re not counting on it anytime soon.
